ƒƒƒWhat are Financial Statements? Why should Financial Statements• Check for compliance with laws and establishedbe audited?accounting standards;Financial statements are a set of reports preparedannually on the financial position and financial• Evaluate internal controls and governanceThe responsibility for preparing reliable financialperformance of an organisation. They are meant tostructures in the organisation;statements rests with the organisations concerned.provide information useful to people who need toAudit provides an independent check of the statements• Assess risk of fraud and error;know the financial health of the organisation forto give confidence and assurance to users that theyvarious reasons, including for making economic• Test check transactions and balances;are prepared in accordance with applicable laws, rulesdecisions.and accounting standards and guidelines and are free• Ascertain that important information is notfrom material errors.omitted; andThe main reports are:• Obtain evidence to substantiate material balancesBalance Sheet -The financial statements of the Government ofin the financial statements.Showing the assets of the organisation (i.e. whatSingapore are audited by the Auditor-General, theit owns) and its liabilities (i.e. what it owes);independent national auditor of the Government,appointed under the Constitution. For statutoryStatement of Income and Expenditure (orAt the end of the audit, the ...
Voir