MANAGEMENT RESPONSIBILITY AUDITOR’S RESPONSIBILITY (PSA’s)

To adopt policies and procedures that will identify,
evaluate and account for litigations, claims and
assessment as a basis for the preparation of the FS
in conformity with applicable financial reporting
framework.
PSA 501- requires the auditor to carry out such
procedures to be aware of the litigations, claims
and assessment involving the entity which may
have a material effect in the FS.

SCOPE OF LIMITATIONS – QUALIFIED and DISCLAIMER OPINION

1. Management REFUSES to give the auditor permission to COMMUNICATE with the entity’s
lawyer or the lawyer REFUSES to REPLY.
2.