Should private limited companies be audited / Maheran Othman

The audit requirement as set out in the Companies Act 1965, requires all companies to have their accounts audited. No distinction is made between large and small companies with regard to audit requirements. The primary objective of an audit is to assure the proprietors that the stewardship of their companies was effectively and honestly carried out. The external auditor has a statutory responsibility to report on the truth and fairness of the accounts of the company and whether proper accounting records and registers have been kept. The auditor should report, as soon as practicable, significant weaknesses in internal controls which come to his attention during the course of an audit, to the management of the companies.