Under the Companies Act, which report is produced if an audit has been carried out?

Under the Companies Act, which report is produced if an audit has been carried out?

• A. Directors' report
• B. Auditors' report
• C. Consolidated accounts
• D. Tax assessment

Answer: (B)

Auditors' report. When an audit has been carried out, the external auditor prepares a formal, independent report that accompanies the financial statements. This auditors’ report communicates the auditor’s opinion on whether the financial statements give a true and fair view (and comply with the Companies Act and the applicable accounting framework). It is the direct result of the audit process and serves as the official assurance to shareholders and others. The other options are not produced as the audit report: the directors’ report is prepared by the board and covers governance and review aspects; consolidated accounts are the combined financial statements for a group where applicable; and tax assessments come from tax authorities, not from the audit itself.

Auditors' report. When an audit has been carried out, the external auditor prepares a formal, independent report that accompanies the financial statements. This auditors’ report communicates the auditor’s opinion on whether the financial statements give a true and fair view (and comply with the Companies Act and the applicable accounting framework). It is the direct result of the audit process and serves as the official assurance to shareholders and others. The other options are not produced as the audit report: the directors’ report is prepared by the board and covers governance and review aspects; consolidated accounts are the combined financial statements for a group where applicable; and tax assessments come from tax authorities, not from the audit itself.