Abhishek Panegal asked 4 years ago
Dear Sir,
In this question wouldn’t the reference of clause (vii),(viii) part II 2nd schedule also apply? Its a case of not obtaining sufficient appropriate evidence. The question also specifies “affirmations from management” is affirmation a form of written representation ? how is reference of SA 580 done ?
Kindly revert at earliest. Thank you.
Ravi Staff answered 4 years ago
Sorry for the late reply
Here affirmations means written representation, auditor relied on WR instead of performing audit procedures hence it is non compliance of SA 580, dont apply professional ethics clauses unless question talks about CA Act or gives hint about it. Otherwise we will have to apply clause 7 / 8 / 9 also, it will be lot of unexpected references. This is standard question it is repeated 5th time see concept no 66.10 of our PARAM QUESTION BANK, EARLIER IT WAS ASKED IN N15R, N17M,P17M, N18M