How can an auditor provide assurance to shareholders whether their funds are being properly utilised or not if he isnt concerned with with prudence of decision made by the management ?

Questions › Category: SA-200 › How can an auditor provide assurance to shareholders whether their funds are being properly utilised or not if he isnt concerned with with prudence of decision made by the management ?

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Pavit Ahuja asked 8 years ago

Question Tags: Prudence considerations?

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Ravi Taori answered 8 years ago

Auditor is suppose to comment whether financial statements show true and fair view of state of affairs of the company. After that shareholders have to analyse whether money is used properly, they can take help of analyst.
We will no do job of analyst. Unless required by law in some instances we never go in efficiency or effectiveness of transactions