An auditor plays a vital function in reinforcing the reliability of financial information by assessing the financial statements of the company and making sure that the information fairly presents the financial condition and past performance of the company.
The duties of the company auditor
Auditors are responsible for the following duties within the business:
- Ensuring that a copy of the company’s annual financial statements is sent, in accordance with this Act, to every person who is entitled to it
- Filing of annual returns to the CIPC
- To examine a company’s financial statements and accounting records and to express an opinion as to the truth and fairness, in all material respects, of the statements and the accountant’s adherence to financial reporting standards.
Every public company or state-owned company is required to appoint an auditor every year at the annual general meeting. Other companies such as private companies, personal liability companies and non-profit companies are not required under the Companies Act to appoint an
auditor but may do so voluntarily.