Group three presentation course work.

1. An Auditor

An auditor is an authorized personnel that reviews and verifies the accuracy of financial records
and ensures that companies comply with tax norms. Their primary objective is to protect
businesses from fraud, highlight any discrepancies in accounting methods, among other things.
The role of an auditor, in general, is no walk in the park. Having been regarded as a certified
professional, the auditor has placed himself, responsibilities to various parties and the duties
that go with it.

The auditor’s opinion basically makes or breaks the reliability of the financial statements and
the information they provide. Audited financial statements have an extremely high degree of

Rights and Duties of an Auditor

An auditor is a professional who is appointed to examine the financial statements of a company
and provide an opinion on whether they are accurate and reliable. Auditors have both rights
and duties, which are essential to ensure the integrity of financial reporting. In this blog, we will
discuss the rights and duties of an auditor in detail.
Rights of an Auditor
1. Right to access information: Auditors have the right to access all the books, records,
and documents of the company they are auditing. This includes financial statements,
bank statements, invoices, contracts, and other important documents that are
necessary to carry out an audit.
2. Right to obtain explanations: Auditors have the right to obtain explanations from the
company’s management and employees regarding any transactions, accounts, or
activities that are relevant to the audit. The management is required to provide all the
necessary information and assistance to the auditor to carry out the audit effectively.
3. Right to communicate with stakeholders: Auditors have the right to communicate with
the company’s stakeholders, including shareholders, board of directors, and
management, to obtain information relevant to the audit. This communication helps
auditors to understand the business operations and identify any risks or issues that may
affect the financial statements.
4. Right to request additional information: Auditors have the right to request additional
information from the company if they believe that the information provided is
insufficient or incomplete. This may include further documentation, clarification on
transactions, or additional testing to verify the accuracy of the financial statements.
Duties of an Auditor
1. Duty to maintain independence: Auditors have a duty to maintain independence and
objectivity throughout the audit process. This means that auditors should not have any
financial or personal interest in the company they are auditing, and should not be influenced
by any external factors that may compromise their independence’s
2. Duty to exercise due care: Auditors have a duty to exercise due care and professional
skepticism in carrying out the audit. This includes conducting appropriate tests, gathering
sufficient evidence, and evaluating the information obtained to form an opinion on the
financial statements.
3. Duty to report findings: Auditors have a duty to report their findings to the company’s
stakeholders in the form of an audit report. The report should provide an opinion on the
financial statements and highlight any issues or risks that were identified during the audit.
4. Duty to maintain confidentiality: Auditors have a duty to maintain the confidentiality of
all information obtained during the audit process. This includes financial information,
personal information of employees or customers, and any other sensitive information that
may be obtained during the audit.
5. Internal Control Evaluation
Evaluating an organization’s internal controls is a fundamental responsibility. Auditors
examine processes and systems to determine if they safeguard assets, maintain data accuracy,
and ensure compliance.
6. Risk Assessment
Auditors assess an organization’s financial risks, including potential fraud, mismanagement,
or errors. They identify and prioritize these risks to focus their audit efforts effectively
7. Documentation
Accurate documentation is a cornerstone of auditing. Auditors must maintain detailed records
of their work, including findings, testing procedures, and conclusions.
8. Communication
Auditors communicate their findings to management, boards, and stakeholders. This
includes preparing audit reports that highlight any issues or areas for improvement.
9. Recommendations
Auditors often make recommendations for improving an organization’s financial and operational
processes based on their findings. These suggestions can help enhance efficiency and reduce
risk.

Auditing is a critical function that helps to ensure the accuracy and reliability of financial
reporting. An auditor is a professional who is trained to perform this function, and their role is to
 provide an independent assessment of the financial statements of an organization. Auditors are
required to have a thorough understanding of accounting and auditing standards, as well as an in-
depth knowledge of the industry they are auditing.

 Remuneration
An auditor's remuneration includes any sums paid by the company for their expenses and
benefits in kind. Large companies must disclose the amount of an auditor's remuneration in their
notes to the accounts.
 Removal
A company's auditor can be removed by a resolution at a general meeting. A director or other
authorized person must give a notice of intention to the company's secretary at least two months
before the meeting. The notice informs the company of the intention to propose the resolution,
not the company's members.
 Resignation
An auditor can resign by sending a notice to the company. The notice is effective from the date it
is received, or from a later date specified in the notice. If the auditor is resigning from a public
company, their resignation can only take effect on the last of the following dates: the day
specified in the notice, the day consent is given, or the day fixed by ASIC.

Give an example of how an auditor can be appointed in Uganda.

i. Appointment by directors. The companies Act indicates that the first auditors maybe
appointed by the directors at any time before Annual General Meeting (AGM), and the
auditors so appointed shall hold office until the conclusion of that meeting.
ii. Appointment by Shareholders: The auditors of a company are usually appointed by the
shareholders at the Annual General Meeting (AGM). Shareholders have the authority to
appoint and remove auditors.
iii. Appointment by registrar of the companies. The companies Act stipulates that where at
the General Annual Meeting (GAM) no auditors are appointed or deemed to be appointed,
the registrar may appoint a person to fill the vacancy. The directors have the duty to inform
the registrar to appoint an auditor within seven (7) days.
iv. Qualifications: The appointed auditors must meet the qualification requirements set forth in
the Companies Act, which includes being a member of a recognized professional
accountancy body.
Give a brief explanation of professional ethics in auditing

Professional Ethics in auditing refer to the moral and ethical principles that guide auditors'
behavior and decision-making processes while conducting audits. It encompasses a set of values,
principles, and standards that promote integrity, objectivity, and independence in the audit
profession.

Professional ethics are principles that govern the behavior of a person or group in a business
environment. Like values, professional ethics provide rules on how a person should act towards
other people and institutions in such an environment.