Document ID: chunk:federal_register_of_legislation:F2023C01124:reg:17:p10
Version: federal_register_of_legislation:F2023C01124
Segment Type: reg
Provision Reference: reg 17 (pt 10/41)
Character Range: 37887–41306

who made the audit appointment or, in some cases, to regulatory authorities;

         (b)                Consider whether it is appropriate to withdraw from the engagement, where withdrawal is possible under applicable law or regulation; and

         (c)                If the auditor withdraws:

             (i)                 Discuss with the appropriate level of management and those charged with governance the auditor's withdrawal from the engagement and the reasons for the withdrawal; and

             (ii)               Determine whether there is a professional or legal requirement to report to the person or persons who made the audit appointment or, in some cases, to regulatory authorities, the auditor's withdrawal from the engagement and the reasons for the withdrawal.  (Ref: Para. A55‑A58)

Written Representations

40.               The auditor shall obtain written representations from management and, where appropriate, those charged with governance that:

         (a)                They acknowledge their responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud;

         (b)                They have disclosed to the auditor the results of management's assessment of the risk that the financial report may be materially misstated as a result of fraud;

         (c)                They have disclosed to the auditor their knowledge of fraud or suspected fraud affecting the entity involving:

             (i)                 Management;

             (ii)               Employees who have significant roles in internal control; or

             (iii)             Others where the fraud could have a material effect on the financial report; and

         (d)                They have disclosed to the auditor their knowledge of any allegations of fraud, or suspected fraud, affecting the entity's financial report communicated by employees, former employees, analysts, regulators or others.  (Ref: Para. A59‑A60)

Communications to Management and with Those Charged With Governance

41.               If the auditor has identified a fraud or has obtained information that indicates that a fraud may exist, the auditor shall communicate these matters, unless prohibited by law or regulation, on a timely basis with the appropriate level of management in order to inform those with primary responsibility for the prevention and detection of fraud of matters relevant to their responsibilities.  (Ref: Para. A61-A62)

42.               Unless all of those charged with governance are involved in managing the entity, if the auditor has identified or suspects fraud involving:

         (a)                Management;

         (b)                Employees who have significant roles in internal control; or

         (c)                Others where the fraud results in a material misstatement in the financial report,

    the auditor shall communicate these matters with those charged with governance on a timely basis.  If the auditor suspects fraud involving management, the auditor shall communicate these suspicions with those charged with governance and discuss with them the nature, timing and extent of audit procedures necessary to complete the audit. Such communications with those charged with governance are required unless the communication is prohibited by law or regulation.  (Ref: Para. A61, A63-A65)

43.               The