Rice Business Report September 2019 September 2019 Rice Business Report | Page 36

Rice Business Report September 2019
Continued from page35……
Do You Spend What You Make?
buy about 60 houses per year, 80 percent of which we wholesale. Our current goal is to use that in-
come to pay off all of our hold property
Continued from page 9……
Fraud Detection and Prevention in Financial Reporting - Is It the Auditors' Responsibility ?
Paragraph 5 also states that "An auditor conducting an audit in accordance with ISAs is responsible for obtaining reasona-
ble assurance that the financial statements taken as a whole are free from material misstatement, whether caused by
fraud or error. Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstate-
ments of the financial statements may not be detected, even though the audit is properly planned and performed in ac-
cordance with the ISAs"
Theses suggests that the Directors are responsible for ensuring that the company keeps proper accounting records that
disclose with reasonable accuracy at any time the financial position of the Company as well as responsible for safeguard-
ing the assets of the Company and taking reasonable steps for the prevention and detection of fraud and other irregulari-
ties and that auditors' responsibility is to express an opinion on whether the summary financial statements are consistent,
in all material respects, with the audited financial statements based on their procedures, which were conducted in accord-
ance with International Standards on Auditing (ISA). Is for this reason that all annual financial reports have directors and
auditors' responsibilities clearly spelt out.
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