(a) Provisions in CAMA to Reduce the Communication Gap between Auditor and Shareholders

1. Management Responsibility for Financial Statements: The management is responsible for preparing accurate financial statements, making it clear that the auditor’s role is to provide an opinion, not certify correctness.
2. Maintenance of Adequate Accounting Records: Management must establish records for safeguarding assets and preventing fraud or errors.
3. Confirmation of Accounting Policies and Judgments: Management must confirm consistent application of policies, prudent judgment, and information preparation.
4. Disclosure of Standards and Guidelines: Management must confirm adherence to standards in financial reporting.
5. Audit Report Basis and Approach: The auditor explicitly states the audit basis and approach, clarifying limitations.
6. Annual General Meetings (AGMs): Mandatory AGMs allow shareholders to interact with auditors directly.
7. Audit Committee Review: Section 359 mandates audit committees to review the scope and planning of audits, bridging understanding with shareholders.

(b) Controls Available to Address Performance Gap

1. Professional Practice Monitoring Committee: Ensures standards adherence by regularly evaluating practices.
2. Mandatory Continuing Professional Education: Keeps professionals updated with evolving standards.
3. Syllabus Review for Accountants: Ensures training reflects current best practices.
4. Technical Reference Committee of ICAN: Provides guidance on technical issues, helping address challenges accurately.
5. Seminars and Debates by ICAN: Encourages knowledge sharing and professional development.
6. Technical Library Access: Offers up-to-date materials for reference on standards and practices.
7. Efficient Disciplinary Tribunal: ICAN’s tribunal enforces standards with authority equal to a High Court.
8. Annual General Meetings (AGMs): Shareholders gain insight into the audit scope, reducing misconceptions about auditor roles.