You are a newly qualified accountant who works for the audit firm Fulford & Co. You have been approached by a potential new client, Bishopthorpe Electronics Pty Ltd, who is looking for an audit firm to carry out an audit on its annual financial report prepared in accordance with the Corporations Act. The managing director, Bob Fleming, is not sure exactly what an audit involves and what are the responsibilities of the auditor.

Required

Prepare notes for a meeting with Bob Fleming which identifies the responsibilities of the auditor and the responsibilities of management.
Your notes should cover the following points:
• Distribution of the annual report to shareholders.
• Delivery of the audit report to the entity.
• Obtaining and evaluating evidence concerning the financial report.
• Preparation and presentation of the financial report.
• Maintaining adequate internal controls.
• Testing internal control procedures.
• Expressing an opinion on the financial report.
• Selecting appropriate accounting policies.
• Ensuring the financial report is presented in accordance with standards.