Auditor’s Role in Reporting of Financial Statement of a Company (A Case Study of Olushola Adekanola and Company Chartered Accountants)

Abstract

 In the contemporary business world, there should be a good communication method between the management and the providers of capital otherwise called the owners of shareholders. Usually, the shareholders appoint expertise as managers/directors to run the business on their behalf. This occurs when the shareholders do not have the technical know-how or have limited time to manage the business. The manager communicates the stage of affairs of the business to them (the owners) at the end of each financial year through the preparation of the financial statement. The financial statement of a company are the annual reports and accounts prepared by the company. The sole responsibility of preparing financial statements of a company of the activities for an ontity for a particular reporting period. The main objective for an entity for a particular for the preparing the financial statement are to show the financial position and state of operations of a company to the relevant users of financial statements, especially shareholders. The financial state of a company is often displayed in the income statements. Balance sheet, cash flow statements, notes to the accounts and other statements, and explanatory materials which form part of the financial statements, which are prepared from the receipts, vouchers, documents and records of a company, the financial statements is mainly designed by the manager to give report of their stewardship to the shareholders.