.seventy six The failure to acquire written representations from administration, together with management’s refusal to furnish them, constitutes a limitation on the scope of the audit. As mentioned additional in paragraph .C3, when the scope of the audit is proscribed, the auditor ought to either withdraw from the engagement or disclaim an opinion. Further, the auditor ought to evaluate the effects of administration’s refusal on his or her ability to depend on different representations, including these obtained within the audit of the corporate’s monetary statements. .49 The evidence offered by the auditor’s checks of the effectiveness of controls relies upon upon the mix of the character, timing, and extent of the auditor’s procedures. Further, for a person management, different combos of the character, timing, and extent of testing could provide adequate evidence in relation to the chance related to the control. Performing walkthroughs will regularly be the simplest means of achieving the goals in paragraph .34.
The willpower of whether an account or disclosure is important is based on inherent danger, with out regard to the impact of controls. .83 Because the audit of internal control over monetary reporting does not present the auditor with assurance that he or she has recognized all deficiencies much less extreme than a fabric weak point, the auditor mustn’t problem a report stating that no such deficiencies had been noted during the audit. .78 The auditor should talk, in writing, to management and the audit committee all materials weaknesses identified through the audit. The … Read More