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207A: Audit must be carried out in accordance with auditing and assurance standards
or “Auditors must follow official standards when checking company finances”
You could also call this:

“Auditor writes a report for shareholders about company's financial statements”

When a company has its financial statements audited, the auditor must write a report for the shareholders about what they found. This report needs to be about the financial statements of the company, or if it’s a group of companies, about the group’s financial statements.

The auditor’s report has to follow all the rules set out in the auditing and assurance standards. These standards make sure the report is done properly and gives the right information.

There’s one exception to this rule. The auditor might not have to follow all the standards if section 207A(3) of the law says they don’t have to. This section might give the auditor some leeway in how they write their report.

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Next up: 207C: Auditor's report must be sent to Registrar and External Reporting Board if requirements have not been complied with

or “Auditors must report to authorities if companies don't follow the rules”
Next

Part 11 Accounting records and financial reporting
Financial reporting: Audit of financial statements

207BAuditor must report to shareholders

  1. The auditor of a company must make a report to the shareholders on the financial statements or group financial statements audited by the auditor.

  2. The auditor's report must comply with the requirements of all applicable auditing and assurance standards.

  3. Subsection (2) is subject to section 207A(3).

Notes
  • Section 207B: inserted, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).