Brave new world: how auditor responsibilities are changing
Fayez Choudhury, CEO of IFAC, looks at the updated Code of Ethics for Professional Accountants, NOCLAR, and how auditor responsibilities are changing
Consider this situation: during an external audit, the audit manager discovers a serious environmental regulation breach, supported by unequivocal evidence. The auditors take the issue to the client, who admits the infraction and subsequently makes a significant provision and related disclosures in the financial statements to avoid material misstatement, but does not remediate the severe environmental consequences. The issue is also raised with the Audit Committee, which agrees to the financial statement actions.
Read the full article on Accountancy Age.