Audit announcement

Audit Announcement

It is hereby announced that the accounting firm Namely Company has been appointed to conduct an audit of the financial statements of XYZ Company for the year ended December 31, 2020. This audit will be conducted in accordance with International Standards on Auditing (ISAs) and any applicable national legal and regulatory requirements.

The scope of the audit will include an appraisal of the financial statements in order to determine whether they represent a true and fair view of the company’s financial position and performance in accordance with the applicable accounting policies. The audit will also include evaluating the accounting frameworks and systems that support the financial statements and the company’s overall financial management policies and procedures.

The objective of the audit is to enable the auditor to provide an opinion on the accuracy of the financial statements. This implies that the auditor is required to plan, execute and complete the audit to produce a written report as required by international auditing standards.

The audit will be conducted by a team of qualified professionals with relevant experience. These professionals will have access to the company’s records and accounts, as well as to the accounts personnel and other staff. During the course of the audit, the company’s accounts personnel will be available to the auditor for queries.

The audit will cover the following aspects of the company’s financial statements:

• Ratification of the Corporation’s Balance Sheet and Profit & Loss Account.

• Examination of the organization’s systems and procedures used to maintain financial records.

• Disclosure of material information in relation to the financial statements.

• Compliance with relevant accounting standards and legal requirements.

• Assurance of the accuracy of the reporting of the financial statements.

• Estimation of material misstatements by the company.

The auditor will also review any changes in accounting policies and make judgments about the effects of potential misstatements that could arise due to any unrecorded or incorrect accounting transactions.

The audit will commence within the next few weeks and it is expected to be concluded by November 30, 2020. Upon the completion of the audit, the auditor’s report will be presented to the Board of Directors.

It is essential that the Board cooperate with the auditor during the course of the audit and provide timely access to the auditor to any information that is deemed necessary. Any non-compliance with the audit instructions will result in a delay in the completion of the audit and in the issuance of the auditor’s report.

We trust that all necessary arrangements will be made to facilitate the professional execution of the audit, and we thank you for your kind cooperation.

The subject of this audit bulletin is the responsibility of management in assessing the effectiveness of internal controls. This bulletin will address the considerations for establishing an internal control system and analyzing the impact of potential changes.

Management is responsible for establishing, maintaining and assessing the effectiveness of internal control systems. Internal controls are designed to ensure management is achieving its objectives related to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.

Management must assess the current internal control system to determine if it is effective in achieving the objectives of the organization. This involves determining which controls are working, how weaknesses are addressed, and how changes to the control system are undertaken.

Management should consider establishing a risk assessment program to identify potential weaknesses and opportunities for improvement. This allows management to respond to changes in the business environment quickly. It is important to consider both the inherent risk and control risk when assessing the current internal control system. Inherent risk refers to the risk that stems from the business environment, while control risk is related to the design or effectiveness of the control system.

Management should consider potential changes when redesigning the internal control system. This could include changes in the risk management process, evaluating the design and effectiveness of new controls, or introducing new procedures or technologies. It is important to evaluate the impact of such changes to ensure the organization is properly managing risk and achieving its objectives.

Management should also consider the impact of any external factors that may have an impact on the control system. This includes changes in the external business environment or the economic climate.

Finally, management should consider the organizational culture when assessing and redesigning the internal control system. This includes considering the values, objectives, and interests of the organization and how those factors influence the control system.

In conclusion, management plays an important role in assessing and redesigning the internal control system. A strong internal control system should be established, maintained and assessed by management to ensure an organization is meeting its objectives and managing risks appropriately.