This report is the analysis of the responsibility of the auditors to review the governance of the audit client by considering ASA 15. The incorporation of the statutory cap of the auditors has major impact on the process to limit the liability of the auditors.

Assessment item 2

Auditors must review client governance per ASA 15. Statutory cap impacts liability limit.

Auditing - Desklib

Auditing

The report has identified various aspects related to ASA 315, American Accounting Association Model and liability of the auditors. The unclear responsibility from the top management of CAB, ineffective executive committee and others have been identified as the significant issues in accordance with ASA 315 for which appropriate recommendations have been provided to overcome the situation. In the second situation, it has been assessed that John has not attended his office by giving a fake reason, which has violated the ethical principle mentioned under the American Accounting Association Model. This mandates the need for David Little, the senior employee of the organisation, to inform the same to the other team members for maintaining ethical integrity. Finally, it has been evaluated that the inclusion of auditors as well as statutory cap would help in minimising the liability of the auditors.

Hartpury University and Hartpury College

Auditing Theory and Practice

This article discusses the responsibilities of auditors for reviewing the governance of clients as per the auditing standard of ASA 315. It also explains the impact of incorporation of auditors and statutory cap on their liability. Additionally, it provides answers to questions related to ethical decision making and American Accounting Association Model.

Audit and Assurance | Assignment-1

Audit Risk Analysis And Control in Organizations

The report highlights the importance of auditing report for risk management as well as to deter fraud. It aids in the prevention of accounting irregularities that prevent the risk of material misstatement.

Key Audit Matters in Independent Auditor’s Report

This article discusses the auditor’s responsibility to review governance of an audit client and its impact on raising audit risk. It also covers the American Accounting Association Model and the Corporation Act’s allowance for auditors to limit their liability.

Auditing

Auditing Theory and Practicelg...

Auditing Theory and Practicelg...

Audit and Assurance | Assignment-1lg...

Audit Risk Analysis And Control in Organizationslg...

Key Audit Matters in Independent Auditor’s Reportlg...

Auditor’s Responsibility to Review Governance of Audit Clientlg...

Auditing Theory and Practice

Auditing Theory and Practice

Audit and Assurance | Assignment-1

Audit Risk Analysis And Control in Organizations

Key Audit Matters in Independent Auditor’s Report

Auditor’s Responsibility to Review Governance of Audit Client