True and Fair View
Definition
The standard of financial statement presentation required by statutory audit frameworks in the UK, EU, India, and many Commonwealth jurisdictions. In the United States, the equivalent concept is 'presents fairly, in all material respects.' Both standards require conformity with the applicable reporting framework and freedom from material misstatement.
- Jurisdictions
- UK, EU, India, many Commonwealth countries
- US equivalent
- Presents fairly, in all material respects
- Requirement
- Conformity with the applicable reporting framework
- Also requires
- Freedom from material misstatement
Common questions
Is there a meaningful difference between the two phrasings in practice?+
Both concepts require the financial statements to conform to the applicable accounting framework and be free of material misstatement. The wording differs by jurisdiction but the underlying audit opinion standard is functionally aligned across most statutory frameworks.
Why does this standard matter to a forensic accountant rather than only a statutory auditor?+
A forensic accountant reviewing prior audited statements needs to understand what the original opinion actually certified, since a clean true-and-fair or presents-fairly opinion does not rule out fraud below the materiality threshold the statutory auditor applied.
Related terms
- Chain of Custody
- The documented chronological record of who collected, handled, transferred, and examined a piece of evidence. For digital evidence, chain of custody includes...
- Forensic Audit
- An examination of an organisation's financial records and systems conducted specifically to gather evidence for legal proceedings. Distinguished from a regular audit...
- ISA 240
- International Standard on Auditing 240, 'The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements,' issued by the IAASB. Sets...
- Reasonable Assurance
- The high but not absolute level of assurance that a statutory auditor seeks to obtain before expressing an opinion. Reasonable assurance acknowledges...
- Statutory Audit
- An audit required by law or regulation, conducted by an independent external auditor, with the objective of expressing an opinion on whether...