Laws and Regulations (1)

Question 1

What is the auditor not responsible for?

Answer 1

Preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations

Question 2

What is the auditor responsible for (assurance)?

Answer 2

Obtaining reasonable assurance that financial statements are free from material misstatement due to fraud and error

Question 3

What is the auditor responsible for (framework)?

Answer 3

Auditor must take into account the legal and regulatory framework within which the entity operates

Question 4

What does ISA 250 distinguish?

Answer 4

Auditor’s responsibilities in relation to compliance

Question 5

Auditor’s responsibilities in relation to compliance category of law and regulation (direct effect)

Answer 5

Thise that have a direct effect on determination of material amounts and disclosures in FS

Question 6

Examples of this direct effect?

Answer 6

Tax or pension laws and regulations

Question 7

Auditor’s responsibilities in relation to compliance category of law and regulation (don’t have direct effect)

Answer 7

Don’t have direct effect on determination of material amounts and disclosures in financial statements

Question 8

What is essential for do not have a direct effect laws and regulations?

Answer 8

Compliance may be fundamental to operating aspects, ability to continue the business, or to avoid material penalities

Question 9

Example of material penalties?

Answer 9

Regulatory compliance or compliance with those laws and regulations