Role Played by Professional Auditors in Uganda
Role played by professional auditors in Uganda
Auditing is the independent examination of financial statements and the underlying books of account so as to form an opinion on whether they are prepared in all material aspects in accordance with the financial reporting framework. Such reporting framework includes International Accounting Standards (IAS), the Companies Act Cap 110 (for Uganda) and any other relevant legislation. This is however carried out by a person termed as auditor.
Internal Audit, Internal audit is conducted by the internal auditor who is an employee of an organization. The main purpose of internal audit is to find out whether the internal control system is working successfully or not. The report of the internal audit is used only by the management for the improvement of internal control system. The internal auditor carries out checking work throughout the year. Although, he is an employee of the organization but he is given some form of independence in order to perform his duties more efficiently.
External Audit, These are the audit other than internal. They are performed by external auditors. The main purpose of this audit is to report on the true and fair view of the accounts.
Statutory audit, Conducted in accordance to the Companies Act requirement and its main objective is to prove the true and fair view. Auditors’ scope of work is defined by statute. It is commonly done by the following limited companies, cooperative societies, government, insurance companies, building societies, banks and parastatals.
Private Audits, Non statutory audit’s main objective is to detect and prevent errors and fraud. The auditor’s scope of work is decided on by an agreement between the management and the auditors.
The auditors of a company other than internal auditors are appointed by members (shareholders) in an annual general meeting; however, the directors can appoint the first auditor to fill a casual vacancy this requires the members’ approval at
Auditing is the independent examination of financial statements and the underlying books of account so as to form an opinion on whether they are prepared in all material aspects in accordance with the financial reporting framework. Such reporting framework includes International Accounting Standards (IAS), the Companies Act Cap 110 (for Uganda) and any other relevant legislation. This is however carried out by a person termed as auditor.
Internal Audit, Internal audit is conducted by the internal auditor who is an employee of an organization. The main purpose of internal audit is to find out whether the internal control system is working successfully or not. The report of the internal audit is used only by the management for the improvement of internal control system. The internal auditor carries out checking work throughout the year. Although, he is an employee of the organization but he is given some form of independence in order to perform his duties more efficiently.
External Audit, These are the audit other than internal. They are performed by external auditors. The main purpose of this audit is to report on the true and fair view of the accounts.
Statutory audit, Conducted in accordance to the Companies Act requirement and its main objective is to prove the true and fair view. Auditors’ scope of work is defined by statute. It is commonly done by the following limited companies, cooperative societies, government, insurance companies, building societies, banks and parastatals.
Private Audits, Non statutory audit’s main objective is to detect and prevent errors and fraud. The auditor’s scope of work is decided on by an agreement between the management and the auditors.
The auditors of a company other than internal auditors are appointed by members (shareholders) in an annual general meeting; however, the directors can appoint the first auditor to fill a casual vacancy this requires the members’ approval at