report issued by a company detailing its activities and financial performance during the preceding year.

a difference—arising from an error or fraud—between the amount, classification, presentation or disclosure of an item in the financial statements.

responsibility in relation to the qualification and supervision of auditors.

responsible for the oversight of a company’s financial reporting and accounting, financial regulatory compliance, financial risk management processes, and the engagement of and interaction with the company’s external auditor on

The auditor concludes that the extent of their inability to obtain sufficient appropriate audit evidence is such that it is not possible to form an opinion on the financial statements.

Preparing the financial statements of a company where management is unable to confirm that it is a going concern. Assets and liabilities are included at the net value that would be realisable in the event of a forced sale or liquidation.

enhancing the user’s confidence in the information that is being reported.

opinion—the auditor concludes that, except for specific matters explained in the audit report, the financial statements give a true and fair view

A financial metric that measures the resources available to a company to finance its day- to-day operations.

A paragraph included in the auditor’s report that refers to a matter appropriately presented or disclosed in the financial statements that, in the auditor’s judgement, is of such importance that it is fundamental

company whose shares can be bought and sold by the general public and are listed on a stock exchange, such as the London Stock Exchange.

In the context of an audit of financial statements, a high, but not absolute, level of assurance.

A financial statement that presents a company’s financial position as of a specified date.