Acca aaa s21 Notes

September 2021 to June 2022 exams
Watch free ACCA AAA lectures 
109

---

Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
3.9. Responsibilities of management and those charged with governance for the 
financial statements
This section is very important and points out that it is management’s responsibility to prepare the 
financial statements in accordance with the International Financial Reporting Standards to maintain 
the system of internal control and to consider the going concern position of the company.
3.10.Auditor’s responsibilities for the audit of the financial statements
The auditors’ responsibilities are to obtain reasonable assurance about whether the financial 
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 
an auditor’s report that includes their opinion. 
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can 
arise from fraud or error and are considered material if, individually or in the aggregate, they could 
reasonably be expected to influence the economic decisions of users taken on the basis of these 
financial statements.
Read carefully in the Illustrative Example (later in this chapter) the details of the auditor's 
responsibilities, which can be located in an appendix to the auditor's report.
3.11. Name of the engagement partner, address of the auditing firm, date the 
auditor’s report was signed and the auditor’s signature
Finally, the auditors must sign the report and must give their address and the date on which it is 
signed. The date of the report is very important because before that date the auditor has an active 
duty: the audit is not yet over. The auditor should still be investigating whether receivables are being 
paid and inventory is selling at above cost etc. After that date the auditor has a passive duty only. This 
means that the auditor is not ‘on the lookout’ for events affecting the truth and fairness of the 
financial statements, but if any are brought to his attention he might have to act.