Requirements set out in the auditing standard CAS 260 require an auditor to communicate certain issues and information to those charged with governance of the auditee entity as a financial statement audit proceeds.

Review the requirements in CAS 260 and discuss how they may affect the risk of an auditor’s being liable to the auditee entity. Contrast this with the impact, if any, on the auditor’s liability to shareholders. As an analytical perspective, consider the auditor’s exposure to both sides as resulting from the three-arty accountability relationship (discussed in Chapter 3). Provide your conclusion on whether this CAS requirement reduces auditor liability risk from either of these sides.

  • CreatedJanuary 09, 2015
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