Management’s Refusal to Allow the AuditoManagement’s Refusal to Allow the Auditor to Send a Confirmation Request

Management’s Refusal to Allow the Auditor to Send a Confirmation Request

1. If management refuses to allow the auditor to send a confirmation request, the auditor shall:
   1. Enquire as to management’s reasons for the refusal, and seek audit evidence as to their validity and reasonableness; (Ref: Para. A8)
   2. Evaluate the implications of management’s refusal on the auditor’s assessment of the relevant risks of material misstatement, including the risk of fraud, and on the nature, timing and extent of other audit procedures; and (Ref: Para. A9)
   3. Perform alternative audit procedures designed to obtain relevant and reliable audit evidence. (Ref: Para. A10)
2. If the auditor concludes that management’s refusal to allow the auditor to send a confirmation request is unreasonable, or the auditor is unable to obtain relevant and reliable audit evidence from alternative audit procedures, the auditor shall communicate with those charged with governance in accordance with ASA 260.[12] The auditor also shall determine the implications for the audit and the auditor’s opinion in accordance with ASA 705.[13]