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Himank Khurana asked 1 year ago

If auditor requests management to send a external confirmation of a sample selected by him.
But management refuses to send stating that such party doesn’t have ability to confirm. (eg: a small job worker not having efficient accounting system).
Then in that case shall a auditor rely on management reply and change its sample? Or should auditor perform alternate procedures to confirm such balance?
And if unable to find SAEE for such balance then consider modifying the opinion?

1 Answers
RaviRavi Staff answered 1 year ago

SA 505 talk about alternative procedure it doesn’t talk about changing sample item, Infact that particular item becomes very important, so it wont be good decision to replace it.
Further SA 530 also says if you dont get confirmation for a sample item then perform alternative audit procedure. Eg subsequent recovery if debtor confirmation not received.
Yes if SAAE is not obtained then we will have to modify audit opinion.

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