Disagreements With Auditors

Disagreements With Auditors

(4) The statutory auditor should discuss with the audit committee all essential issues discussed by the statutory auditor with management regarding the appointment or retention of the statutory auditor, including important discussions on the application of accounting standards and audit standards. 28/See AU, paragraph 341, for the liability requirements of a statutory auditor to assess whether there are serious doubts about a company`s ability to remain one year beyond the date of review of financial statements beyond a reasonable period of time. In addition, AU is available. 341.03a-c, the statutory auditor has an overview of the requirements for assessing the entity`s ability to continue to act as an entity in progress for a reasonable period of time. 9. The auditor should provide the audit committee with an overview of the overall audit strategy, including the date of the audit,7/, and discuss with the audit committee the significant risks identified during the legal auditor`s risk assessment procedures.8/16. When the auditor is aware that management has been consulted with other auditors on important audit or accounting matters and the comptroller has identified a problem with these issues, the auditor should provide the audit committee with his or her views on the issues that have been the subject of such consultation. Note: As part of its communications to the audit committee, management may communicate some or all of the issues covered in point 12. If management discloses any of these matters, the auditor is not required to disclose them at the same level of detail as management as long as the legal auditor (1) has participated in the management discussion with the audit committee ( (2) which confirmed to the audit committee that management has communicated these issues adequately and (3) with respect to critical accounting methods that, for the audit committee, have identified the methods of balance sheeting and evaluation considered critical by the legal auditor. The statutory auditor should inform the audit committee of any missed or insufficiently described questions. Note: The difficulties encountered by the legal auditor during the audit may constitute a domain restriction39/which may cause the legal auditor to change the opinion of the legal auditor or to withdraw from the obligation.

Note: In this communication, the term „other independent public audit firms“ includes companies that conduct audit procedures during the current period, whether or not they have a relationship with the legal auditor. 19. The auditor should report corrected inaccuracies, with the exception of clearly trivial, to the audit committee regarding accounts and information that may have been identified only by audit procedures, and discuss with the audit committee the impact such corrected misrepresentations could have on the company`s accounting process. The facts clearly referred to fraud due to the lack of controls. The organization suffered a moderate monetary loss. In addition, the entity was fined a minor fine for non-compliance with a new regulation. 18. The auditor should present to the audit committee the timing of uncorrected false statements relating to accounts and information34/, which the legal auditor submitted to management35// The auditor should discuss with the audit committee or find that management has properly discussed with the audit committee the basis of the finding that the uncorrected inaccuracies were negligible, including the qualitative factors.

The auditor should also indicate that uncorrected misrepresentations or questions that underscor the basis for this uncorrected false information could lead to a significant error in the annual accounts in the future, even if the auditor concluded that the uncorrected inaccuracies were not significant to the audited financial statements.