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Section 727 of The Companies Act No. 17 of 2015: Auditor’s report on annual financial statement of company

    

(1) An auditor shall make a report to the members of the company on all annualfinancial statements of the company of which copies are, during the auditor’s tenure of office—
(a) in the case of a private company — to be sent out to members in accordance with section 662; or
(b) in the case of a public company — to be presented at a general meeting of the company in accordance with section 679.
(2) The auditor shall include in the auditor's report—
(a) an introduction identifying the annual financial statement that is the subject of the audit and the financial reporting framework that has been applied in its preparation; and
(b) a description of the scope of the audit identifying the auditing standards in accordance with which the audit was conducted.
(3) The auditor shall clearly state in the report whether, in the auditor's opinion,the annual financial statements—
(a) gives a true and fair view of—
(i) in the case of an individual balance sheet — of the financial position of the company as at the end of the relevant financial year;
(ii) in the case of an individual profit and loss account—of the profit or loss of the company for the financial year; and
(iii) in the case of a group financial statements — of the financial position as at the end of the financial year and of the profit or loss for the financial year of the undertakings to which the statements relate, taken as a whole, so far as concerns members of the company;
(b) has been properly prepared in accordance with the relevant financial reporting framework; and
(c) has been prepared in accordance with the requirements of this Act.
(4) The auditor shall, in the case of an individual annual financial statement,clearly state in the report whether, in the auditor's opinion—
(a) the company's balance sheet gives a true and fair view of the financial position of the company as at the end of the relevant financial year; and
(b) the company's profit and loss account give a true and fair view of the company's profit or loss for that year.
(5) The auditor shall, in the case of a group financial statement, clearly statein the report whether, in the auditor's opinion—
(a) the consolidated balance sheet gives a true and fair view of the financial position of the undertakings to which the statement relates, taken as a whole, as at the end of the relevant financial year; and
(b) the consolidated profit or loss account gives a true and fair view of the profit and loss of those undertakings, taken as a whole, for that financial year.
(6) The auditor shall, in the case of an individual financial statement or a groupfinancial statement, also clearly state in the report whether, in the auditor's opinion, the statement—
(a) has been properly prepared in accordance with the relevant financial reporting framework; and
(b) has been prepared in accordance with the requirements of this Act (including the prescribed accounting standards).
(7) The auditor shall—
(a) state in the report whether the report is unqualified or qualified; and
(b) include in the report a reference to any matters to which the auditor wishes to draw attention without qualifying the report.

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Disclaimer: This document is not to be taken as legal advise.

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