How frequently must auditors responsible to the board of directors prepare an audit of common and collective funds?

Auditors responsible for preparing an audit of common and collective funds must do so annually to ensure that the financial statements accurately reflect the funds' financial position and performance over the year. This annual requirement is established to maintain transparency and accountability, providing critical oversight for the board of directors. By conducting these audits once a year, auditors can evaluate the appropriate controls, compliance with applicable regulations, and the overall effectiveness of financial reporting processes.

Other frequencies, such as bi-annually or quarterly, may not provide the same level of comprehensive oversight that an annual audit offers. While management self-risk assessments play an important role in the overall risk management and internal control process, they do not replace the necessity for an annual audit. The annual audit serves as a formal review, ultimately providing stakeholders with a reliable assessment of the fund's finances, which is essential for sound decision-making by the board.