THE next key issue in this series on the reform of company law to improve corporate governance lies in the area of the liability of auditors. The issue of auditor liability is hotly contested across the world. This largely reflects the role that auditors play in the operations and regulation of companies across the world and the way in which some major auditing firms have been implicated in corporate disasters.
As in many countries that have an English-based company law, Zimbabwean company law requires companies to have a statutory audit each year. The primary responsibility of auditors is to check whether a company’s accounts show a true and fair view of the state of its affairs. The audit report is useful to shareholders, regulators and other stakeholders with an interest in the company. It is therefore important to ensure that the audit process is conducted in a proper way.
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