In the context of governmental accounting and reporting, the management setting has a direct impression on an entity’s capacity to collect and present correct monetary information. Thus, the internal management surroundings and associated procedures are key areas of concern to an entity’s external auditor.
.C6 The auditor may concern a report disclaiming an opinion on inside management over monetary reporting as soon because the auditor concludes that a scope limitation will prevent the auditor from acquiring the reasonable assurance essential to precise an opinion. The auditor isn’t required to perform any further work previous to issuing a disclaimer when the auditor concludes that he or she will be unable to acquire enough evidence to precise an opinion.
.98 After the issuance of the report on inner management over monetary reporting, the auditor might turn out to be aware of situations that existed at the report date that may have affected the auditor’s opinion had she or he been conscious of them. The auditor’s evaluation of such subsequent information is similar to the auditor’s analysis of data discovered subsequent to the date of the report on an audit of financial statements, as described in AS 2905, Subsequent Discovery of Facts Existing at the Date of the Auditor’s Report . The auditor ought to talk this data to the audit committee in a timely method and previous to the issuance of the auditor’s report on inner management over monetary reporting. When making this communication, it’s not needed for the auditor to repeat … Read More
