Section Audit Procedures When Non‑Compliance Is - Auditing Standard ASA 250 Consideration of Laws and Regulations in an Audit of a Financial Report - Audit Procedures When Non‑Compliance Is Identified or Suspected | Zoe
Auditing Standard ASA 250 Consideration of Laws and Regulations in an Audit of a Financial Report
Audit Procedures When Non‑Compliance Is Audit Procedures When Non‑Compliance Is Identified or Suspected
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Audit Procedures When Non‑Compliance Is Identified or Suspected
If the auditor becomes aware of information concerning an instance of non‑compliance or suspected non‑compliance with laws and regulations, the auditor shall obtain: (Ref: Para. A17–A18)
An understanding of the nature of the act and the circumstances in which it has occurred; and
Further information to evaluate the possible effect on the financial report. (Ref: Para. A19)
If the auditor suspects there may be non‑compliance, the auditor shall discuss the matter, unless prohibited by law or regulation, with the appropriate level of management and, where appropriate, those charged with governance. If management or, as appropriate, those charged with governance, do not provide sufficient information that supports that the entity is in compliance with laws and regulations and, in the auditor’s judgement, the effect of the suspected non‑compliance may be material to the financial report, the auditor shall consider the need to obtain legal advice. (Ref: Para. A20–A22)
If sufficient information about suspected non‑compliance cannot be obtained, the auditor shall evaluate the effect of the lack of sufficient appropriate audit evidence on the auditor’s opinion.
The auditor shall evaluate the implications of identified or suspected non‑compliance in relation to other aspects of the audit, including the auditor’s risk assessment and the reliability of written representations, and take appropriate action. (Ref: Para. A23–A25)