3.1.5 Rights and duties of auditors

Auditors have specific rights and duties when conducting external audits. These rights and duties are generally established by laws, regulations, professional standards, and contractual agreements. Here are some key rights and duties of auditors:

Rights of Auditors:

1. Access to Information: Auditors have the right to access all relevant information and records necessary to perform their audit work. This includes financial statements, accounting records, supporting documents, and other relevant data. The right to access information is essential for auditors to obtain sufficient and appropriate audit evidence.
2. Confidentiality: Auditors have the right to maintain the confidentiality of the information they obtain during the audit process. They are expected to exercise professional judgment and adhere to ethical standards to ensure the privacy and confidentiality of client information.
3. Independence: Auditors have the right to maintain their independence and objectivity throughout the audit engagement. They should be free from any undue influence or conflicts of interest that may compromise their ability to express an unbiased opinion on the financial statements.
4. Communication with Management and Governance Bodies: Auditors have the right to communicate with the management of the audited entity, including the board of directors or audit committee. This communication allows auditors to obtain necessary explanations, clarify audit findings, and discuss any significant issues identified during the audit.

Duties of Auditors:

1. Professional Competence and Due Care: Auditors have a duty to possess the necessary professional competence, knowledge, and skills to perform their audit work. They are expected to exercise due care and professional skepticism throughout the audit process, conducting their work with the level of skill and diligence expected of a competent auditor.
2. Compliance with Auditing Standards: Auditors have a duty to conduct audits in accordance with applicable auditing standards, regulations, and professional guidelines. They should follow the generally accepted principles and practices of auditing to ensure the reliability and integrity of the audit process and the resulting audit opinion.
3. Independence and Objectivity: Auditors have a duty to maintain independence and objectivity when performing audits. They should avoid any relationships or situations that could compromise their independence or create conflicts of interest. Auditors must act in the best interest of the public and express their opinions without bias or undue influence.
4. Reporting and Opinion: Auditors have a duty to express their professional opinion on the financial statements and related disclosures of the audited entity. This opinion is communicated through the audit report, which provides an assessment of the fair presentation of financial statements and compliance with applicable accounting principles.
5. Professional Ethics: Auditors have a duty to adhere to professional ethics and codes of conduct. They should demonstrate integrity, objectivity, confidentiality, and professional behavior in all aspects of their work. They should avoid conflicts of interest, maintain professional competence, and act in accordance with the principles of professional ethics.