Roles and responsibilities of auditors, CEO, directors
Auditing and Assurance – Assignment 1
Ashley Erasmus
With reference to Caltex Australia 2012 Annual Report discuss the following:
The role and responsibilities of Auditors and Company Board of Directors and the CEO and Senior Management with respect to the Accounting information reported on in the Annual report.
The roles and responsibilities of a Board of Directors vary according to the nature of the company. They are usually responsible for determining the strategic direction of the business as well as handling the important operational and governance matters such as setting company policy and recruiting and monitoring the Chief Executive Officer. According to the 2012 annual report for Caltex Australia, the Board appoints the Managing Director or CEO along with other senior management staff, delegating responsibility among them for overseeing and directing the company’s day-to-day operations, including the preparation of accurate financial information whilst remaining within the parameters set by the Board (Caltex, 2012). This senior management such as the Chief Financial Officer along with team of financial specialists under his supervision are responsible for actually recording the financial information and organising it into reports. They are responsible for implementing internal controls and procedures to ensure that the information reported is accurate and fair and meets the objectives and constraints set by the Board and commercial law. The integrity of the financial information prepared by the employees under the supervision of senior management and the CEO must be reviewed and approved by the Board prior to its publication in the annual report (Caltex, 2012).
Responsibility for the integrity of the reports essentially lies with the preparers, however the board must do their part in detecting any material misstatement as they have a responsibility to their shareholders to provide them with a fair and accurate representation of the company’s financial
Ashley Erasmus
With reference to Caltex Australia 2012 Annual Report discuss the following:
The role and responsibilities of Auditors and Company Board of Directors and the CEO and Senior Management with respect to the Accounting information reported on in the Annual report.
The roles and responsibilities of a Board of Directors vary according to the nature of the company. They are usually responsible for determining the strategic direction of the business as well as handling the important operational and governance matters such as setting company policy and recruiting and monitoring the Chief Executive Officer. According to the 2012 annual report for Caltex Australia, the Board appoints the Managing Director or CEO along with other senior management staff, delegating responsibility among them for overseeing and directing the company’s day-to-day operations, including the preparation of accurate financial information whilst remaining within the parameters set by the Board (Caltex, 2012). This senior management such as the Chief Financial Officer along with team of financial specialists under his supervision are responsible for actually recording the financial information and organising it into reports. They are responsible for implementing internal controls and procedures to ensure that the information reported is accurate and fair and meets the objectives and constraints set by the Board and commercial law. The integrity of the financial information prepared by the employees under the supervision of senior management and the CEO must be reviewed and approved by the Board prior to its publication in the annual report (Caltex, 2012).
Responsibility for the integrity of the reports essentially lies with the preparers, however the board must do their part in detecting any material misstatement as they have a responsibility to their shareholders to provide them with a fair and accurate representation of the company’s financial