Audit Opinion on Financial Statement of Banyan Tree

Question: Describe about the Audit Opinion on Financial Statement of Banyan Tree. Answer: Auditors Opinion Financial statement of Banyan Tree has been audited by Ernst Young LLP. They had provided an unqualified opinion on the financial statement according to which financial records shows true and fair view and are free from material misstatements (Annual report on Banyan Tree, 2015). In accordance with the opinion of the audit, financial statements are prepared by considering all accounting standards and complying with ethical aspects. It shows that internal control of the company is good and able to conduct their operational activities in a fair manner. Audit of Banyan tree has been conducted by complying with the audit standards of Singapore. On the basis of audit standards, Ernst Young LLP were required to comply with ethical norms and perform audit work with the reasonable assurance. Sufficient audit evidence have been obtained by auditors in order to provide audit opinion. Explanation Of Key Terms Used In Audit Report Collectively the group Audit of the entire group is done by Ernst Young LLP. The group includes subsidiaries as well as joint venture and associates of Banyan tree. Accounting policies and explanatory information Accounting standards applicable to the company has been evaluated to ensure that financial statements are prepared by considering proper norms (Porter, Simon and Hatherly, 2014). Further, explanatory information is considered for a better understanding of the company. Risk of material misstatement Auditor is required to identify the risk of material misstatement i.e. possibility of error or fraud in business (Lin and et,al., 2011). The existence of material misstatement shows that financial statements does not show true and fair view or are not in accordance with the financial reporting framework. Internal control It can be defined as method placed by the company in order to provide assurance regarding the integrity of financial statements. References Annual report on Banyan Tree. 2015. [Pdf]. Available through investors.banyantree.com/PDF/Annual_Reports/2015/BTH_AR2015.pdf . [Accessed on 24th November 2016]. Lin, S. and et,al., 2011. The role of the internal audit function in the disclosure of material weaknesses.The Accounting Review.86(1). pp.287-323. Porter, B., Simon, J. and Hatherly, D., 2014.Principles of external auditing. John Wiley Sons.