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IAI Actuarial Core Principles · Business Finance · Construction and features of company accounts and reports

Which of the following is most likely to be a matter the auditor reports on in the audit report, beyond the opinion on the financial statements, for a company incorporated in India?

The auditor reports on whether proper books of account have been kept, as appears from examination of those books, in addition to the opinion on the accounts. Forecast share prices, marketing strategy, directors' private investments and dividend mode are not matters for the audit report.

  1. AThe directors' personal investment portfolios
  2. BWhether the directors' recommended dividend will be paid in cash or bonus shares
  3. CWhether proper books of account have been kept by the company, as far as appears from examination of those booksCorrect
  4. DThe company's expected share price over the next year
  5. The adequacy of the company's marketing strategy

Explanation

Under company law the auditor reports on matters such as whether proper books of account have been kept, as seen from examination of them, and whether the accounts agree with the books. Share price forecasts, marketing strategy, directors' personal portfolios and dividend form are not audit report matters.

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