There is quite a lot of misunderstanding about what auditors mean when they sign off accounts as "true and fair". For instance, they are not 100% certifying every number in the balance sheet and profit and loss account.
"True" means the numbers given by the directors are reasonably accurate to within a level of tolerable error. If the accounts of, say, BP had to be certified as accurate to the nearest penny, the audit fee would be prohibitively high.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Millions of over 50s fear pension investment risk – how should you position your portfolio?To de-risk or not to de-risk, that is the question. Act too late and you could face irreversible losses. Move too early and miss out on significant gains that could transform your retirement.
-
£150 off energy bills: millions more to get discount this winterThe expansion of the Warm Home Discount scheme follows a government U-turn on the Winter Fuel Payment. We explain who will get the £150 discount
