COMMUNICATION between the AUDITOR and the CLIENT | ISA/ASA 260 explained

[@ahmedalimohamed4200]

thank you so much your videos change my life thank you 🙏

[@cherryji9376]

Hi, Amanda; you stated/drew that "management is part of the "those charged with governance" that auditors communicate when it comes to ASA 260; however, I found that ASA 260 Says "Management” includes officers and others who also perform senior managerial functions. Management includes those charged with governance only in those instances when they perform such functions., there is a particular exam question on communicating with those charged with governance, and "management", as a broad term, is not the correct option in the AAA exam.

[@joechew1412]

thank you so much on sharing this topic. As I was in the process of reviewing the communication process, im totally blur. luckily the content of this video guide me on the internationally acceptable framework.

[@amandalovestoaudit]

You’re very welcome Joe!

[@osamashakoor3182]

Ma'am can you please add videos about ISA 250, also ISAs 620 and 720 are also missing I guess. You videos have helped me a lot preparing for my exam tomorrow :)

[@KashifKhan-ij8bd]

im auditor but in some clients management have strong realtion with TCWG (those charged with governance) which is a scope limitation and i couldn't execute my procedures.

[@amandalovestoaudit]

Hi - is this a private or public firm? In smaller privately owned firms, mgmt and TCWG are often the same people. Did they refuse to cooperate or provide representations to result in the scope limitation? I’ve not come across this in the large public companies I used to audit.

[@KashifKhan-ij8bd]

In pakistan the only institute authorized to conduct audit is ICAP(institute of chartered accountants of pakistan) which is a private institute and all the audit firms work under this institute and follows its law which is chartered accountants ordinance 1961and which follows all international standards on auditing and IFRS(international financial reporting standards).so all the firms are private firm and obviously i m working in private firm as an chartered accountant . i ve studied in ISA that management prepares financial statement but in real life financial statement is prepared by auditor itself, management just provides you trial balance they don't know who to prepare it. when i studied in the standards i thought i m more authorized than the president of my country (haha) but real life is quite different.there is a strong familiarity and self interest threat among the management and TCWG and between the auditor and Client a well.i have always quarrel with the management because they want me to work according to their order. they want me to show less net profit to avoid tax expense and majority of the clients do so. i want to know does these factors exists in your firm too?. how is the audit in your country ?

[@amandalovestoaudit]

Hmm - IASs and IFRS suggest that mgmt are responsible for preparation of the financial statements. As the auditors the TB is often the first piece of evidence we get - but we should not be constructing the P&L and B/S for mgrs! In Australia, our Corporations Act clearly makes preparation of the FS a mgmt job. We can provide advice or suggestions but no more than that.

[@KashifKhan-ij8bd]

hmm but our case is quite different. we make adjustments in their trial balance and than we prepare financial statements according to IFRS and ISA. which takes 2 days or maximum 3 days . then we gather all the evidence and third party confirmations. we also provide them other services like we file their tax returns and some other services in corporate sector and we gives hem expert advice regarding going concern which we charge extra amount. that's why Pakistani C.A is very difficult to pass and when we pass we gets thousands of dollars in dubai and other foriegn countries and i think our C.A is 3rd best in the world . the first is ICAEW(England and wales), second is Scotland's C.A and third is Pakistan's C.A. all i m saying this because i ve been watching your videos of auditing from many years. it is very knowledgeable and honestly it makes me a good auditor as well. I m very thankful to you for such videos because you clear the concept easily. whenever i take lectures of auditing and before i go to class i search that topic in your video which gives me direction how to deliver the Audit knowledge to students. Keep doing this ,you are doing a great job, God bless you.

[@adnannawab7311]

That is not the case with all the audit firms in Pakistan I myself been part of 3 Audit Firms in my articlesship phase. the clients that i audited have qualified staff. they prepared the F/S themselves. we were there to audit the financial statements & give them suggestions for any adjustments or Disclosures if required by according to standards. furthermore our firm was QCR(Quality Control Review) rated firm which means that every third year Team of ICAP(Institute of Chartered Accountants of Pakistan) review of Audit Files of some of our clients to ensure that proper work has been done & Audit procedures been followed.

[@bahemisadan3684]

Please consider to include ISA 450. thank you

[@amandalovestoaudit]

New video up today on my channel ☺️