How will the auditor report in case of change of management of borrower for reconstruction of act as per SARFAESI ACT,2002? In such case, will we refer SA 250 for the same?
Non compliance of law is dealt in SA 250. Change in management is as per legal process in SARFAESI, it doesn’t mean non-compliance of law, so you should see if it is really non-compliance of law.
Now change in management is not quantifiable financial event, no need of accounting. It may be disclosed in notes to accounts if it affects going concern or related to it.
Auditor can put EMP if there is disclosure in notes to accounts and OMP if there is no disclosure in note to accounts.