The responsibilities of external auditors aren’t always well understood, especially with regard to the detection and reporting of fraud. When external auditors provide non-audit services to their audit clients, it is essential that the auditors make a clear dissimilarity between their audit and non-audit responsibilities.
(a) describe the responsibilities of external auditors to directors and shareholders.
(b) describe why it is essential for external auditors to be independent of their clients.
(c) describe the advantages and drawbacks of external auditors providing consulting services to their audit clients.
Section 110 of the constitution states that the Director of Audit shall submit an annual report to be laid before the Assembly. The annual report is examined by the Public Accounts Committee which is a select committee of the Legislative Assembly.
Moreover section 110 of the constitution together with the Finance and Audit Act 1973 refers to the responsibilities, duties and powers of the Director of Audit.
(a) describe the powers and duties of the Public Accounts Committee as set out in standing orders of the Assembly.
(b) describe what are the duties and powers of the Director of Audit as set out in constitution and the Finance and Audit Act 1973.