Outdoor Power Equipment Institute of Canada Page 2 Board of Directors' Responsibilities
The Board of Directors' role is to act in an objective, independent capacity as a liaison between the auditors and management, to ensure the auditors have a facility to consider and discuss governance and audit issues with parties not direct responsible for operations. The Board of Directors' responsibilities include: Being available to assist and provide direction in the audit planning process when and where appropriate; Meeting with the auditors as necessary and prior to release and approval of the financial statements to review audit, disclosure and compliance issues; Where necessary, reviewing matters raised by the auditors with appropriate levels of management, and reporting back to the auditors their findings; Making known to the auditors any issues of disclosure, corporate governance, fraud or illegal acts, non-compliance with laws or regulatory requirements that are known to them, where such matters may impact the financial statements or auditors' report; Providing guidance and direction to the auditors on any additional work they feel should be undertaken in response to issues raised or concerns expressed; Making such enquiries as appropriate into the findings of the auditors with respect to corporate governance, management conduct, cooperation, information flow and systems of internal controls; and Reviewing the draft financial statements prepared by management, including the presentation, disclosure and supporting notes and schedules, for accuracy, completeness and appropriateness, and approve. Initial Planning Our audit approach begins with an extensive planning process that includes:
Assessing the current business and operating conditions;
Understanding the composition and structure of your business and organization; Understanding the accounting processes and internal controls; Understanding the information technology systems; Identifying potential engagement risks; and Planning the scope and timing of substantive testing which take into account the specific identified engagement risks. Materiality Materiality is the magnitude of a misstatement (including an omission) in the financial statements or related disclosures that would affect the judgment of a reasonable person using those statements. As auditors, we are responsible for providing reasonable assurance that the financial statements are free from material misstatements.
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