The Managing Director of Muscat Traders LLC, Mr. Humaid said al Harthy, says he is fed up with you, the external auditor. He has frequently complained that the audit provides no benefit to him as Owner-Manager. During the final audit last year you discovered that Mr.Humaid had been withdrawing funds from the business which he refused to disclose as Directors remuneration and therefore you were obliged to qualify your audit opinion. Mr Humaid intends to remove you as auditor.

Required:

Discuss the principal activities of auditors during the audit process in order that the auditor

may give an opinion on financial statements with suitable practical examples.