ISA 250 – Consideration of Laws and Regulations in an Audit of Financial Statements

5 Communicating non-compliance

• Auditor shall communicate non-compliance to those charged with governance regarding identified or expected non-compliance
• Where auditor expects violation is with the intent of management then auditor shall communicate this to those charged with governance at his earliest
• If auditor finds management or those charged with governance are involved in violating the provisions of law then auditor shall seek the higher authority, if any, and communicate the matter.
• If there is no such higher exists then auditor may seek legal advice in this regard

6 Auditor’s report

If identified or expected contradictions are not reported appropriately in the financial statements then auditor shall provide a qualified or adverse opinion

If auditor was unable to obtained sufficient appropriate audit evidence regarding known or expected violations that may affect financial statements materially then auditor shall see if:

• Limitation is clearly imposed by management or those charged with governance then auditor expresses a qualified or disclaimer of opinion
• He is unsure if limitations are a result of conditions restrictions of management then auditor shall decide in the light of circumstances

7 Disclosure to legal authorities

For identified or suspected contraries auditor shall assess if he is required to disclose such matter in front of legal authorities