[Anonymous]

In performing a financial statement audit in accordance with Government Auditing Standards, an auditor is

required to report on the entity’s compliance with laws and regulations. This report should:

a. State that compliance with laws and regulations is the responsibility of the entity’s management.

b. Describe the.laws and regulations that the entity must comply with.

c. Provide an opinion on overall compliance with laws and regulations.

d. Indicate that the auditor does not possess legal skills and cannot make legal judgments.

The answer is a.

I thought answer should have been C. Since I am wrong, could anyone please confirm, Under GAS, does an auditor require to express an opinion or not? which is option C here. I thought they do. If they don’t what does an auditor express when auditing an entity’s compliance with laws and reg.

Please help!

[jckund]

For C, I think the wording is tricky as it states overall compliance with laws and regulations…

as per becker, it says the auditor's responsibility is: to obtain sufficient evidence to form an opinion on whether the entity complied, in all material respects, with the compliance requirements applicable to its programs.

The auditor is only concerned with compliance as it relates to the financial statements. There are a lot of completely unrelated laws that are out of the auditor's realm of expertise and therefore they couldn't possibly express an opinion on whether the company complies with every law.

[Anonymous]

this is a trick question.

you do report an opinion on compliance with laws and regulation. but NOT “OVERALL” compliance. only those that have a direct material effect on the finanicial statements.

[Anonymous]

Thanks, guys. English is not my first language, I hope i dont have to pay the price for it in Auditing. I ll have to be very very careful….I am very stressed out!!!:(

[Anonymous]

try your best. but AUD is a WORD GAME! make sure you read and UNDERSTAND what is being ASKED about the questions. one word can make such a huge difference, sadly.. ;(

[Author]

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