Vous êtes sur la page 1sur 3

AUDITED VS.

UNAUDITED SECTIONS Tiger Brands, is a public listed company that is required, by the Companies Act and JSE listing requirements, to be audited. An audit is conducted to obtain reasonable assurance that the financial statements are free from material misstatement. Being free from material misstatement makes the information in the financial statements useful to users. Shareholders must be adequately informed with useful information in order to exercise their right to vote and to protect their interests if the directors fail to do so. They are entitled to information about the financial condition of the company and its management of their invested funds. Favourable financial performance is indicative of a higher return and increased possibility of actually receiving that return on investment. This information will help them decide whether to hold, sell or buy more shares. The independent external auditors, Ernst and Young, have issued an unqualified opinion that the financial statements present fairly in all material aspects. The auditors report refers to pages that are audited in arriving at the audit opinion, namely; Consolidated and separate statements of; financial position, comprehensive income, changes in equity and cash flow Summary of ratio and logistics [pg. 14], significant accounting policies and other explanatory information Value added statement [pg.15] and Statutory information [Pg.105,106] Tiger Brands share option scheme and Phantom cash option scheme [Pg. 87 to 91 ] Table of directors emoluments for the year ended 30 September 2011 and Table of directors emoluments for the year ended 30 September 2010 [Pg.96 to 99] The audited pages contain the financial information on the companys net worth, growth potential and any limitations thereof, enabling shareholders to determine if they can sell their purchased shares for a higher price in future. The statement of comprehensive income allows shareholders to see the amount of revenue received and assess the companys financial performance eg. Is revenue too low? Is there a chance of it increasing in the future? In this way, the shareholders can evaluate whether the company has lost revenue due to loss in market share and if the business has no growth potential, they may decide to sell shares immediately to invest in companies that can generate a substantial return.

Shareholders need to know how solvent and liquid Tiger Brands is and if they are continuing operations as a going concern. They also need to have an idea of the credit rating eg. Is the company excessively indebted and unable to pay debts as they fall due? If so, shareholders will be at risk of loss of returns on investment due to a cash flow problem highlighted in the cash flow statement. This statement is also useful in predicting future cash flow which will affect the growth rate of the company. Information on directors emoluments allow shareholders to view directors remuneration and hold them accountable for excess and unexplained amounts paid, especially if there was no special resolution by shareholders. The other audited information helps shareholders identify key areas where shareholders can make suggestions for improvement. The unaudited parts of the financial statements are discussed below with regard to usefulness: Responsibility for annual financial statements, Report of the independent auditor, Directors approval and Certificate by company secretary allows the shareholder to see how directors discharged their responsibility for overseeing the preparation, integrity and objectivity of financial statements that fairly present the state of the affairs. Shareholders are assured that a compliance framework was enforced to safeguard the companys integrity and promote high standards of ethical behaviour. Effects of changing prices displays the effect of inflation and observes cash flows essential in operating results, budgets, plans and new projects. The emphasis is concentrated towards the objective of the creation of shareholder wealth in real terms. Analysis of ordinary shareholders shows categories and geographic distribution of shareholders. Prospective shareholders would want to know which category they belong to and which countries have the shareholder majority. But why??? Shareholders diary- allows the shareholders to know when dividends are declared and paid. Administration section provides company contact details, website address for further queries and information on the share transfer secretaries. Based on the above, the audited sections provide more reliable (acceptable level of risk of material misstatement) and relevant information to the shareholders for decision making. Although the unaudited sections are useful, it better serves as additional information that is secondary to the more useful audited sections.