BBA3102:COPORATE

GOVERNANCE
ABOUT THE LECTURER

Dr Kakuba Sultan Juma

0701968753

 Email: sultan_juma@yahoo.co.uk
 ROLE OF STATUTORY AUDITORS
A legally required review of the accuracy
of a company's or government's financial
records.

 The purpose of a statutory audit is the

same as the purpose of any other audit -
to determine whether an organization is
providing a fair and accurate
representation of its financial position by
examining information such as bank
balances, bookkeeping records and
financial transactions.
 ROLE OF STATUTORY AUDITORS
 Therefore, a statutory auditor is an
individual legally mandated to carry out
financial audit of a corporation/company
to ensure that these accounts of the
company represent a fair and accurate
picture of the company’s current
financial position on the date of the
balance sheet.

 Thus,a statutory auditor has the right to

access all of the company's financial
books, records, and information.
 ROLE OF STATUTORY AUDITORS
 Performance and accountability have become
vital elements in the corporate governance
framework.
 Improving organisational performance and
accountability with an eye on delivering more
appropriate, efficient and effective public
service is the hallmark of good governance.

 Accountability
involves making ethical choices
in accordance with personal, professional,
organisational and societal norms and
values.
 The ability to defend or account for
performance according to some ethical
framework is part of the accountability
framework.
 ROLE OF STATUTORY AUDITORS
 Appropriate rigorous reporting procedures or
systems of internal checks and balances have
been implemented;

 Accurate,truthful and timely reports of actual

performance have been filed with relevant
authority regarding the mission, finances and
operating structure of the organisation;

 The organisation has accounted for the policies

and activities of the body as required by the law;
and,

 Theoversight authorities had sufficient resources

and expertise to ask the right questions and
pursue the right answers
 ROLE OF STATUTORY AUDITORS
 The need for good corporate governance is
underlined by the necessity to protect and
enhance shareholder value, meet the
company’s obligations to employees, and
secure the interests of all stakeholders in the
corporate environment.

 The goal is to guard against the kind of

abuses that led to the corporate scandals and
financial crises that threatened corporate
relationships in the last decade.
 ROLE OF STATUTORY AUDITORS
A statutory auditor has full authority to
check the financial records of the company
and publish his findings via an auditor’s
report.

 The shareholders and owners of the company

can then be assured of the authenticity and
reliability of the financial statements.

A statutory Auditor carrying out financial

audit of a company helps stakeholders like
creditors, employees, potential investors etc.
to make their decisions on these accounts,
since they are authentic.
 ROLE OF STATUTORY AUDITORS
A statutory auditor has the right to access
all of the company’s financial books, records,
and information. These should be made
available to him at all times.

 He/she also has the right to seek any

further information he thinks is necessary
for his audit.

 He has the duty to write an auditor’s report.

In this, he must state if the financial
statements of the company give a true and
fair representation of their financial
position and affairs.
 ROLE OF STATUTORY AUDITORS
 If
he/she is writing a qualified report, i.e.
the statements are not true and fair, he
must clearly state his reasons for the
same.

 Incase the auditor uncovers any fraud

during his audit he/she must report it to
the Central Government authorities.

 Whileauditing and providing the Audit

Report he must follow the Auditing
Standards