Companies Act: Sec: 163
Section 163 of the Companies Act No.7 of 2007 is the most important section in the statute dealing with the role and legal responsibilities of auditors. Excerpts of the Companies Act No.7 of 2007:163:
(1) The auditor of a company shall make a report to the shareholders on the financial statements audited by him.
(2) The auditor’s report shall state-
a. The basis of opinion;
b. the scope and limitations of the audit;
c. whether the auditor has obtained all information and explanation that was required;
d. whether in the auditor’s opinion as far as appears from an examination of them, proper accounting records have been kept by the company;
e. whether in the auditor’s opinion the financial statements give a true and fair view of the matters to which they relate and if they do not, the respects in which they fail to do so, and;
f. whether in the auditor’s opinion the financial statements and any group statements comply with the requirements of section 151 or section 153, as the case may be, and if they do not, the respects in which they fail to do so.
(3) The auditor of the company shall at the same time as he delivers his report to the company, deliver to the company a statement of-
a. the existence of any relationship (other than that of auditor) which the auditor has with, or any interests which the auditor has in, the company or any of its subsidiaries; and
b. the amounts payable by the company to the person or firm holding office as auditor of the company as audit fees and expenses and as a separate item, any fees and expenses payable by the company for other services provided by that person or firm.