Section Limitation on Scope Imposed by Managemen - Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (July 2020) - Limitation on Scope Imposed by Management

Limitation on Scope Imposed by ManagemenLimitation on Scope Imposed by Management

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###### Limitation on Scope Imposed by Management 1. Unless required by law or regulation, an auditor shall not accept an engagement to review a financial report when management has imposed a limitation on the scope of the auditor’s review. (Ref: Para. A48) 2. If, after accepting the engagement, management imposes a limitation on the scope of the review, the auditor shall request management to remove the limitation. If management refuses the auditor’s request to remove the limitation, the auditor shall communicate, in writing, to the appropriate level of management and those charged with governance, the reason(s) why the review cannot be completed. (Ref: Para. A49) 3. If management and, where appropriate, those charged with governance, refuses the auditor’s request to remove a limitation that has been imposed on the scope of the review, but there is a legal or regulatory requirement for the auditor to issue a report, the auditor shall issue a disclaimer of conclusion or qualified conclusion report, as appropriate, containing the reason(s) why the review cannot be completed. (Ref: Para A50) 4. When the auditor disclaims a conclusion on the financial report, the auditor shall not include the elements required by paragraph 35(b). 5. When the auditor disclaims a conclusion on the financial report, the auditor shall amend the description of the auditor’s responsibilities required by paragraph 38 to include only: 1. A statement that the auditor’s responsibility is to conduct a review of the entity’s financial report in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity; 2. A statement that, however, because of the matter(s) described in the Basis for Disclaimer of Conclusion section, the auditor was not able to obtain sufficient evidence to provide a basis for a review conclusion on the financial report. 3. The statement about auditor independence and other ethical responsibilities required by paragraph 35(c).