Glossary
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Audit report
The auditor prepares a report on the results of the audit for the attention of the general assembly, recommends acceptance or rejection of the accounts and makes additional recommendations if necessary. The audit report is not voted on. It serves as a decision-making aid for members when approving the annual financial statements. As a rule, the report is first submitted to the committee.
It is not obligatory but it is of advantage if the auditor is personally present at the general meeting and can answer questions as needed.
It is not obligatory but it is of advantage if the auditor is personally present at the general meeting and can answer questions as needed.
Question
Is it right that the audit report isn't to be voted on? Is it true that following the approval of the annual report a vote is to be held on the audit report and then the annual financial statements?
Answer
The audit report is prepared by an independent person or body. It recommends whether the financial statements should be accepted or rejected and may also contain further recommendations.
A vote is not held on the audit report; it serves as an opinion-forming aid for members with respect to the annual financial statements. If the members are not satisfied with the work of the auditor, they can vote the auditor out and propose somebody else.
