Auditors and accounting offices are an essential element in the financial reporting system, and the quality of their work greatly affects the success of the financial market.
In our article today, The role of auditors and accounting offices in preparing financial reports in the Kingdom, we will learn about the importance of the role played by auditors and accounting offices,
such as CFOONLINE, the authorized financial office in Saudi Arabia.
Financial statements and information
Because financial statements and information are an essential factor in enhancing confidence in the market and raising the level of transparency and disclosure in the financial market.
As it is the means through which establishments communicate financial information to users of these lists to make their decisions in a timely manner.
It is important to activate the role related to preparing, reviewing, and verifying the quality of financial statements by all parties involved in this task as follows:
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The role of managing facilities subject to the Authority’s supervision
Management is responsible for the preparation and fair presentation of the financial statements and related disclosures as required in accordance with the International Financial Reporting Standards adopted in the Kingdom of Saudi Arabia.
In accordance with the laws and regulations to which establishments subject to the Authority’s supervision are subject, these responsibilities include:
- design
- And implementation
- Maintaining internal control tools related to the preparation and fair presentation of financial statements free of material misstatements, whether due to error or fraud.
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Role of the board of directors
The relevant Companies Law, in addition to the Corporate Governance Regulations, clearly places responsibility for preparing the financial statements of joint-stock companies on the company’s board of directors.
The board must also appoint qualified people to manage the company and people with accounting knowledge to manage its financial affairs.
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The role of audit committees and other entities charged with governance
Audit committees are essential in the governance of listed companies and determine the course and form of the listed company’s relationship with its external auditors.
The results of the Authority’s program to inspect registered offices can please the audit committees in carrying out their oversight role, although this report is not specific to a particular office.
It may be appropriate for audit committees to review auditors’ performance in reviewing some financial statements and some high-risk items.
The questions that audit committees can ask their auditors are:
- Has the registered office of the listed company been selected for examination by the Authority?
- Has the audit file of the listed company been selected for examination by the Authority?
- What are the basic aspects that the Authority examined in the listed company’s file?
- Did the Authority identify deficiencies in examining the listed company’s file?
- Has the Authority identified deficiencies in other audits that include accounting treatments or audit procedures similar to those found in the audit file of the listed company?
- Has the Authority identified deficiencies in the quality control system in the registered office?
- What are the responses of the registered office to the shortcomings identified by the Authority?
- What is the mechanism for the registered office to evaluate the deficiencies identified by the Authority, develop corrective plans, and monitor the quality of the audit so that these deficiencies are not repeated in the future?
- Is it possible to provide the committee with a copy of the office’s transparency report?
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The role of auditors and accounting offices in preparing financial reports
The purpose of the audit is to enhance the degree of confidence of users of financial statements.
This is achieved by the auditors gathering sufficient and appropriate audit evidence in order to express an opinion on whether the financial statements are prepared in all material respects in accordance
with the applicable financial reporting framework.
The International Auditing and Assurance Standards Board (IAASB) has developed an audit quality framework.
According to this framework, the term audit quality includes the main elements that create an environment that increases the likelihood of performing quality audits on an ongoing basis.
Quality audits can be performed by engagement teams that:
- Values, morals and appropriate behavior.
- Sufficient knowledge, skill and experience and had sufficient time to perform audit work.
- Implement a serious review process and quality control procedures that are consistent with applicable systems, regulations and standards.
- Providing useful reports in a timely manner.
- Interact and communicate appropriately with other relevant parties.
- Enabling an adequate quality control system at registered office level and at the audit process level is crucial to enhancing the quality of the audit process.
- A good quality control system helps manage risks.
- It emphasizes effective governance and accountability.
- It provides highly trained professionals with skills relevant to the client’s industry and areas of expertise.
“At CFOONLINE we understand that financial matters can be complicated, but we are here to make it easier for you with our professional and customized services.”
In conclusion: We have explained to you The role of auditors and accounting offices in preparing financial reports,
and we have highlighted the major role played by our financial experts at CFOONLINE and the services they provide to clients to achieve their financial goals professionally.
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