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Planning

3.3 Procedures

 Obtain a general understanding of the client's legal and regulatory environment.

 Inspect correspondence with relevant licensing and regulatory authorities.

 Enquire of management and those charged with governance as to whether the
entity is compliant with laws and regulation.

 Remain alert to possible instances of non-compliance e.g. reading board
minutes, inspecting correspondence from lawyers and through performing
substantive procedures.

 Obtain written representation that the directors have disclosed all instances of
known and possible non-compliance to the auditor.

3.4 Reporting of non-compliance

Those

rd
Management charged with 3 parties Shareholders
governance

Communicate If the non- If there is a
the non- compliance is a duty to By modifying the

compliance on a deliberate act by report e.g. to auditor’s opinion

timely basis management a regulator

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