An Auditor is a person or a firm appointed by a company to execute an audit. The auditor’s job is to write a report at the conclusion of the audit which determines the level of accuracy and clarity that the organization has accounted for.
The responsibilities of an auditor if there has been a limitation on the scope of the audit are:
(a) If the auditor does not accept the validity of management’s request and is prevented from carrying out the conformations, there has been a limitation on the scope of the audit’s work and the auditor should consider the possible impacts on the auditor’s report.
(b) If management is unwilling to make or extend its assessment when requested to do so by the auditor, the auditor should consider the need to modify the auditor’s report as a result of the limitation on the scope of the auditor’s work.
(c) Representations by management cannot be a substitute for other audit evidence that the auditor could reasonably expect to be available. If the auditor is unable to ‘obtain sufficient appropriate audit evidence regarding a matter which has, or may have, a material effect on the financial statements end such evidence is expected of the audit, even if a representation from management has been received on the matter.
(d) When the principal auditor concludes that the work of the other auditor cannot be used and the principal auditor has been able to perform sufficient additional procedures regarding the financial information of the component opinion or disclaimer of opinion because there is a limitation in the scope of the audit.
(e) A limitation on the scope of the auditor’s work may sometimes be imposed by the entity in the terms of a proposed engagement, however, in such situation if the auditor believes the need to express a declaimer of an opinion exists.
(f) A scope limitation may be imposed by circumstances, for example when the timing of the auditor’s appointment is such that the auditor is unable to observe the counting of physical inventories.
(g) When there is the limitation on the honk of the auditor’s work that requires expression of a qualified opinion or a disclaimer of opinion, the auditor’s report should describe the limitation and indicate the possible adjustments to the financial statements that might have been determined to be necessary.