In SA550, If auditor finds any non compliance than what will he do? And After checking compliances of each and evry law, if still there is any non compliance than what? Is Auditor responsible for this?

Questions › Category: SA-250 › In SA550, If auditor finds any non compliance than what will he do? And After checking compliances of each and evry law, if still there is any non compliance than what? Is Auditor responsible for this?

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Chanchal Bajaj asked 6 years ago

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Ravi Staff answered 6 years ago

First of all it is SA 250
Management is responsible for making arrangements of law compliances. Auditor gets evidence for compliance of laws having direct material effect on financial statements and he gets evidence for non-compliance which may have material effect.
If non-compliance is detected, probe and get in to details, discuss with management , if they agree to do accounting for penalties and other liabilities give clean opinion if not then modify.