Communications to regulatory and enforcement authorities, Auditing

Communications to Regulatory and Enforcement Authorities

The auditor’s professional responsibility to sustain the confidentiality of client information ordinarily prevents reporting fraud and error to a party exterior the client entity. The auditor believes seeking legal advice in such situations.

Errors can be explained as an intentional mistake and they can happen at any stage in a business transaction and they can be of any kind. Auditors would principally be fascinated in the prevention, discovery and disclosure of errors for the following causes:

(a) Existence of errors might indicate that accounting records are untrustworthy and are thus not a satisfactory basis from which to organize financial statements. The auditor could thus conclude that appropriate books of accounts have not been kept where there are so many material faults. This is a basis for qualification of an auditor's report.

(b) Too many faults might also point out that the system of internal control is not consistent, and hence the auditor wishing to place any reliance on a system of internal control might not be capable to do so.

(c) When errors are of adequate magnitude, they might be sufficient to affect the correct and fair view specified by the accounts.

Posted Date: 12/3/2012 5:40:47 AM | Location : United States







Related Discussions:- Communications to regulatory and enforcement authorities, Assignment Help, Ask Question on Communications to regulatory and enforcement authorities, Get Answer, Expert's Help, Communications to regulatory and enforcement authorities Discussions

Write discussion on Communications to regulatory and enforcement authorities
Your posts are moderated
Related Questions
Audit Sampling ISA 530 Audit Sampling and Other Selective Testing Procedures states Audit sampling is the application of a compliance or substantive procedure to less than 100%

how to operate distribute amount and section rate also provision party bill

Advantages and Disadvantages of Joint Audits The general disadvantages and advantages of joint audits as: Advantages 1. All fees and work are welcome to audit firms. 2. A

You are the auditor of ABC Company and the audit process is almost complete. The audit report is due to be signed next week. However, the following additional information on two ma

Companies Modes of Operation Some companies (especially small ones) operate without any overtly expressed plan and simply carry out the business as always, responding to market

State four factors considered determining sufficiency of audit evidence

Are you able to help me my advanced auditing assignment? It is Tuesday and it is due Friday. I have worked hard on it but I am struggling with it. Carmen

The following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Code has b

The modern integrated audit approach combines elements of various traditional audit areas having financial, operational, and information technology.

concept,need,advantage