Answered Essay: Assume that, towards the end of the audit, management has asked that the audit be downg

Assume that, towards the end of the audit, management has asked that the audit be downgraded to a review. What is your response?

Expert Answer


The nature and scope of the audit is primarily dependent on the letter of engagement and legal framework governing the audit that includes the auditing standards. When management requires the audit be downgraded to a general review, an auditor should not accept such wish of management.

In a financial audit, auditor is independent and responsible for reporting to shareholders. So, best response in such situation is to ignore the management wish for downgrading the audit and continue to report as usual with the requirements of audit engagement and legal frame work.

In the case of internal audit (or) management audit, there is a clear working manual and guidance from bylaws of the organisation. So, auditor cannot downgrad audit procedure to a review because, his job requirements are already specified by the rules and regulations governing an Internal audit.

If there exists an audit commitee in the organisation, the auditor can inform the commitee the reasons why he cannot accept the directions of management.

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