1. avatar says

    It is my understanding that the Auditor is auditing the draft accounts? I feel like I’m missing something here but if the auditor were to realise that the depreciation had not been accounted for could he not be inform the accountant and have them rectify it before certifying the accounts? Then he wouldn’t have to disclaim it?

    • Profile photo of gromit says

      The auditor would inform the company about misstatements. But the Financial Statements are the company’s and sometimes the directors insist on an accounting treatment or amount that the auditors cannot agree to. If the directors do not change the FS for a material misstatement the auditors will have to modify their opinion.

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