Auditors are charged with making an independent examination of an entity’s accounts and expressing an opinion on whether they are ‘true and fair’. Their work is carried out in accordance with Australia’s auditing standards set by the Auditing and Assurance Standards Board (AUASB). External auditors play a key role in assuring shareholders and others relying on the company’s financial reports that the reports comply with standards. In the event of a company collapse, the external auditor is often under fire for not identifying the warning signs.
There is a difference, however, between the expectation a user may have about the work of an auditor and the work that is actually performed. The profession is working to close this expectation gap.
