a. Audit of Financial Statements:
An audit of financial statements is an independent examination of the financial statements of an entity, conducted by an appointed auditor, with the objective of expressing an opinion on whether the financial statements are prepared in all material respects, in accordance with the applicable financial reporting framework. The purpose of an audit is to enhance the degree of confidence of intended users in the financial statements by ensuring that they present a true and fair view of the entity’s financial position and performance .

b. Overall Objectives of the Independent Auditor (NSA 1 and ISA 200):
The overall objectives of the independent auditor in conducting an audit of financial statements are:

1. To Obtain Reasonable Assurance:
   The auditor seeks to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error. This enables the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the relevant financial reporting framework .
2. To Report on the Financial Statements:
   The auditor must report on the financial statements and communicate their findings in accordance with NSA and ISA requirements. If the auditor cannot obtain reasonable assurance, they are required to issue a qualified opinion or disclaim an opinion based on the circumstances .

c. Rights of the Auditor (CAMA 2004 – Sections 360 and 363):
The main statutory rights of the independent auditor under CAMA include:

1. Right of Access to Accounting Records:
   The auditor has the right to access all of the company’s books, accounts, and vouchers at any time during the audit process .
2. Right to Information and Explanations:
   The auditor is entitled to all information and explanations necessary for the proper conduct of the audit, and they may seek this information from the company’s management or other relevant parties .
3. Right to Attend General Meetings:
   The auditor has the right to receive notice of and attend general meetings of shareholders, including the annual general meeting, where they may address matters affecting the audit .
4. Right to Speak at General Meetings:
   The auditor has the right to speak at shareholders’ meetings on any matters related to the audit and their responsibilities, particularly when there is a disagreement with the directors .
5. Right to Receive Copies of Written Resolutions:
   The auditor must receive copies of any written resolutions passed by the company’s shareholders .