Auditor’s Report

Running head: AUDITOR’S REPORT
Auditor’s Report
Name of the Student:
Name of the University:
Authors Note:

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AUDITOR’S REPORT
Executive summary:
An auditor’s job is to conduct an audit of financial statements of an entity with an objective of
providing unbiased and independent opinion on these statements as to their true nature and
character. He is to express his opinion on these statements by gathering necessary evidence from
his audit procedures to be in a position to correctly verify the nature of these statements. Every
country has different rules and regulations for the auditors to follow and comply with while
conducting an audit to ensure that the audit is effectively carried out. In Australia, the auditing
standards issued by the Australian Auditing and Assurance Standards Board are the standards to
be followed by the auditor in conducting an audit effectively. A detailed discussion and analysis
is provided below on a recent audit negligence case to determine the responsibility of the auditor
and whether the auditor was actually negligent in the case.

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AUDITOR’S REPORT
Contents
Executive summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Evaluation of the case study:...........................................................................................................3
Culpability and responsibilities explained by considering the facts of the case:............................4
Explanation and investigation of relevant issues auditing and accounting issued in the case:.......5
Issue in the above case:................................................................................................................5
Evaluation of contractual relationship:........................................................................................6
Duty of the defendants towards the plaintiffs:.............................................................................6
Root cause of the issues:..................................................................................................................7
Problems and misrepresentation made by the defendants:..............................................................7
Recommendation and improvements:.............................................................................................8
Reporting requirements auditing standards:................................................................................8
Auditors’ professional, ethical and legal responsibilities:...........................................................9
Audit program- audit planning procedures, evaluation of risk associated with business and
assessment of internal controls:.................................................................................................10
Other effective measures:..........................................................................................................10
References:....................................................................................................................................12

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AUDITOR’S REPORT
Introduction:
The accountants have been alleged to be negligent in Boyd vs. Ackley case where it has been
claimed by the petitioner that the accountants have been unprofessional and negligent in their
behavior and failed to discharge their responsibilities as auditor of the particular company in
question. A detailed discussion on the auditor’s responsibilities in respect to the company and
whether there was unprofessional behavior on the part of the auditor of the company shall be
evaluated in this document.
Evaluation of the case study:
The plaintiff in Boyd vs. Ackley were the 100% share owners of a company. The couple who
filed the petition in a court of law owned 100% shares in the company. The couple in the past
however, have used the services of the defendant accountants to handle different matters of other
companies along with the personal matters of the couple. In fact the defendant accountants were
also personal friend to the couple. In this case, subsequent to acquiring another new company the
couple appointed the defendant accountants to take care of accounting matters of the business.
The plaintiffs filed this case against the accountants alleging that the company has made
overpayments due to the erroneous statements issued by the accountants. Thus, resulting in huge
loss to the company due to the negligent behavior of the auditor. Hence, the plaintiffs alleged
that the accountants have committed breach of duty by their negligent behavior of issuing
erroneous statement resulting in overpayments by the company. This is the brief description
about the case. A detailed look to the facts of case shall be helpful in determining the actual
liability of the accountants and to assess whether the accountants of the company were actually
negligent while discharging their responsibilities as the accountants of the company (Palmrose
and Kinney, 2018).