Audit Framework & Regulation

*Directors:
Directors are part of top-level management of the company
where they make strategic decisions and they are internal
stakeholders. Financial Statements allow directors to look at the
performance of the business for a year to see how the company
performed.

*Creditors:
They usually lend money to the business, for example: trade
Payables, bank etc. who will be repaid overtime. They are the
external stakeholders of the business. Financial Statements
allow creditors how the company is performing to check the
riskiness of the company i.e. to meet the debts and which will
help the creditors to decide whether or not to provide further
debts.

*Shareholders:
Shareholders are actually owners of the company and they are
connected stakeholders. Usually, they appoint directors to run
the company on behalf of them. Financial Statements allow
shareholders to look how the company is performing, whether
or not their wealth is maximized and also to ensure that the
business will continue to run in the future.

*Professional Skepticism:
This means to have a mind set to ask questions i.e., to create
doubt so that true things reveal. For the purpose of audit,
auditors always ask questions, keep things observing and find
enough proof so that they can ensure the true and fair view of
the financial statements.