audit services

my question is can we audit KPIs?

It is now a requirement under FTSE rules that these three KPIs must be disclosed in an annual report (water usage, CO2 emissions and the extent of recycling) Given that the auditor has to read all information in the annual report - financial statements and EVERYTHING else - the auditor is required to disclose by way of reporting inconsistent or misleading information. So, effectively, yes, the auditor is required to "audit" KPIs

and one more thing sir,since management is responsible for the preparation of the financial statements...if something goes wrong in the financial statements,is the management to be blamed or the auditor?since the auditor is the one that provides assurance as well..

It depends exactly what you mean "if something goes wrong in the financial statements" The auditors should plan their work so as to have a reasonable expectation of discovering material misstatement whether arising through fraud, error or other irregularity. If it exists, and the auditors fail to discover it, then on the face of it the auditor is at fault. But there is a "get out" for the auditor. If the fraud / irregularity is being committed by management, then the auditor could be excused for failing to discover it It's management's responsibility to design and introduce systems to enable the timely preparation of true and fair financial statements capable of being relied upon. In either situation, where the financial statements contain a material misstatement, "blame" needs to be allocated. Hopefully, for the profession, it will be directed towards management! OK?