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Darren Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Darren Co

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Kim Smith.
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  • June 6, 2020 at 2:37 am #572946
    toushiga
    Participant
    • Topics: 424
    • Replies: 172
    • ☆☆☆☆

    Ms,for PYQ Q5(c)

    For last second paragraph:
    1. Why need to seek legal advice if refuse to amend the KPI? is it because of the KPI required by law therefore it will be breach of the law if not including?

    Thank you.

    June 8, 2020 at 7:58 am #573189
    Kim Smith
    Keymaster
    • Topics: 135
    • Replies: 8309
    • ☆☆☆☆☆

    No – that is not the reason.

    The topic is the auditor’s responsibilities relating to other information (ISA 720).
    The ISA states that if other info is no corrected after communicating with TCWG, the auditor should “take action appropriate considering the auditor’s legal rights and obligations, to seek to have the uncorrected material misstatement appropriately brought to the attention of users …”

    The auditor would therefore obtain legal advice on what action is appropriate – in this case it suggest legal advice on withdrawing from the engagement.

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