Week 2 - Recap Flashcards
1
Q
Why do we need assurance over the financial statements?
A
To give assurance to shareholders that the financial statements presented are broadly true and fair
2
Q
Why are shareholders considered as one of the most important stakeholders?
A
They are holders of residual risk - if company goes bankrupt, they get paid last
3
Q
Who prepares the financial statements?
A
Board of directors and senior management
4
Q
Who are internal auditors?
A
Auditors that work for the company, are paid by the company, are the company’s employees, BUT are independent (not working with management)
5
Q
Who did internal auditors report to and who do they NOW report to?
A
Used to report to finance director of the company
Now report to audit committee
