Additionally, the auditor ought to evaluate the reasonableness of management’s conclusion that the scenario meets the criteria of the SEC’s allowed exclusion and the appropriateness of any required disclosure related to such a limitation. If the auditor believes that management’s disclosure concerning the limitation requires modification, the auditor ought to follow the identical communication duties that are described in paragraphs .29 via .32 of AS 4105, Reviews of Interim Financial Information. Consideration of these results may require the auditor to change the character, timing, and extent of substantive procedures and to plan and carry out additional checks of controls, particularly in response to identified control deficiencies. .97 The auditor may obtain data about subsequent events with respect to situations that did not exist at the date specified in the assessment but arose subsequent to that date and before issuance of the auditor’s report.
.A2 A management objective offers a selected goal towards which to gauge the effectiveness of controls. .ninety two The auditor ought to decide the effect his or her antagonistic opinion on inner management has on his or her opinion on the monetary statements. Additionally, the auditor ought to disclose whether his or her opinion on the financial statements was affected by the antagonistic opinion on inner management over financial reporting. Because of its inherent limitations, inside control over financial reporting may not stop or detect misstatements. Also, projections of any analysis of effectiveness to future periods are topic to the risk that controls could turn out to … Read More