DharaDhara asked 10 months ago

As per SA 610 External auditor only gives opinion about FS whether they are right or wrong and Internal Auditor consults regarding deficiency.
 example- if external auditor comes across errors such as depreciation rates are wrong , or the valuation are wrong which may not be that material, or heads are wrongly classified and expenses are not properly segregated.
The question is-
Will The external auditor in any kind of mistake or small error ask the management to rectify it ?
or will he only give opinion on FS without rectifying anything ?

1 Answers
RaviRavi Staff answered 10 months ago

Clearly stated in SA 450 and its common understanding, auditor informs management about misstatements and asks them to rectify them, if they dont then he further goes to TCWG and even they dont do it the auditor goes for modifying his opinion.