Topic: GOVERNMENT AUDITING

reference: https://www.dbm.gov.ph/wp-content/uploads/2012/03/Manual-on-PCC-Chapter-1.pdf

Explain the following:

Explain: 1. .A12 Certain other laws and regulations may need particular attention by the auditor because they have a fundamental effect on the operations of the entity [as described in paragraph .OBb. Noncom pliance with laws and regulations that have a fundamental effect on the operations of the entity may cause the entity to cease operations or call into question the entity's continuance as a going concern. For example, noncompliance with the requirements of the entity's license or other entitlement to perform its operations could have such an impact {for example, for a bank, noncompliance with capital or investment requirements}. 2. .1115 Because the nancial reporting consequences of other laws and regulations can vary depending on the entity's operations, the audit procedures required by paragraph .14 are intended to bring to the auditor's attention instances of noncompliance with laws and regulations that may have a material effect on the financial statements. 3. .A13 Because the effect of laws and regulations on nancial statements can vary considerably, written representations, as required by section 580, provide necessary audit evidence about management's knowledge of identified or suspected noncompliance with laws and regulations, the effects of which may have a material effect on the nancial statements. However, written representations do not provide sufficient appropriate audit evidence on their own and. accordingly. do not affect the nature and extent of other audit evidence that is to he obtained by the auditor.14