Audit procedures for Compliance with Law

Audit procedures for Compliance with Law (Material effect)

Auditor will perform the audit procedure for compliance of laws & regulation has material effect on the financial statements.

1.    Management Response

Auditor will make an inquiry from the management regarding the compliance of laws and regulation which may have material effect on the financial statement.

2.    Communication with Legal counsel

Auditor may communicate with legal council to confirm compliance of laws and regulation, which may materially effect the financial statement.

3.    Professional Skepticism

Auditor shall exercise professional skepticism that during the audit. Circumstances may indicate the non compliance of laws. Those circumstances may come to the knowledge of auditor while performing other audit procedures.

4.    Written Representation from Management

Auditor shall take a written representation from the management that all cases of non compliance with laws which are relevant to the financial statement have been identified to the auditor.

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