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Chapter 83 4
1.5 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 deliberate act report e.g. to auditor’s opinion
a timely basis by management a regulator
1.6 Withdrawal from the engagement
The auditor may decide that the non-compliance with laws and regulations is so
serious that they need to withdraw from the engagement (i.e. resign as auditor).
In addition, if there has been a breakdown of trust between the auditor and
management, or the auditor has doubts about the competence of management, the
auditor may consider resignation.
The auditor should seek legal advice before taking this course of action
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