Page 8 - Use Of Confirmations And Related Parties
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USE OF CONFIRMATIONS & RELATED PARTIES
Enquiries regarding Litigation and Claims(SAAPS 4)
AUDITOR’S RESPONSIBILITIES
The auditor should obtain sufficient appropriate audit evidence
regarding:
o whether all material litigation and claims have been identified (i.e.
ascertain completeness)
o The probability of any material revenue or expense arising from such
matters and the estimated amount thereof (i.e. ascertain occurrence
and accuracy); and
o the adequacy of the accounting treatment of such matters including
their disclosure in the financial statements (i.e. evaluate accuracy and
disclosure).
MANAGEMENT’S RESPONSIBILITIES
Management must implement policies and procedures to identify,
evaluate ,record and report the outcome of any material litigation
and claims.
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