Page 102 - DCOM204_AUDITING_THEORY

Auditing Theory Manpreet Kaur, Lovely Professional University

Notes Unit 6: Laws and Regulations in Audit

CONTENTS
Objectives
Introduction
6.1 Considerations of Laws and Regulations in an Audit of Financial Statements
6.1.1 Scope
6.1.2 Effect of Laws and Regulations
6.2 Responsibility for Compliance with Laws and Regulations
6.2.1 Responsibility of Management for the Compliance with Laws and
Regulations
6.2.2 Responsibility of the Auditor
6.2.3 Differing Requirements are specified for each of the previously mentioned
Categories of Laws and Regulations
6.2.4 The Auditor’s Consideration of Compliance with Laws and Regulations
6.3 Laws and Regulations for Auditing Procedures
6.4 Procedures when Non-compliance is Discovered
6.4.1 Reporting Responsibility of the Auditor for Non-compliance with the Laws
and Regulations by the Entity under Audit
6.4.2 Non compliance on Auditor’s Report
6.5 Communication/Reporting of Non-compliance
6.5.1 To Management
6.5.2 To the Users of the Auditor’s Report on the Financial Statements
6.5.3 To Regulatory and Enforcement Authorities
6.6 Withdrawal from the Engagement
6.7 Indications that Non-compliance may have occurred
6.8 Audit and Accounting Standards
6.8.1 Going concern as per AS-I
6.8.2 Financial Indicators
6.9 Four Stages on Scale of Assessment
6.9.1 Going concern Status being Appropriate
6.9.2 Going concern Status being Questionable and Resolved by Management
Explanations
6.9.3 Going concern Status being Questionable and Managements Explanations
being Inadequate
6.9.4 Going concern Status being Inappropriate
6.10 Duty of Statutory Auditor for Compliance with Accounting Standards
6.11 Applicability
6.12 Summary
6.13 Keywords
6.14 Review Questions
6.15 Further Readings

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