Auditor Unable to Continue the Audit EngAuditor Unable to Continue the Audit Engagement

Auditor Unable to Continue the Audit Engagement

1. If, as a result of a misstatement resulting from fraud or suspected fraud, the auditor encounters exceptional circumstances that bring into question the auditor’s ability to continue performing the audit engagement, the auditor shall:
   1. Determine the professional and legal responsibilities applicable in the circumstances, including whether there is a requirement for the auditor to report to the person or persons who made the audit appointment or, in some cases, to regulatory authorities;
   2. Consider whether it is appropriate to withdraw from the engagement, where withdrawal is possible under applicable law or regulation;
   3. If the auditor withdraws:
      1. Discuss with the appropriate level of management and those charged with governance the auditor’s withdrawal from the engagement and the reasons for the withdrawal; and
      2. Determine whether there is a professional or legal requirement to report to the person or persons who made the audit appointment or, in some cases, to regulatory authorities, the auditor’s withdrawal from the engagement and the reasons for the withdrawal; and (Ref: Para. A173–A176)
   4. Where law or regulation prohibits the auditor from withdrawing from the engagement, consider whether the exceptional circumstances will result in a disclaimer of opinion on the financial report.