Page 128 - CA Final PARAM Digital Book.

• Evaluate the implications of management’s refusal on the auditor’s assessment of the
relevant risks of material misstatement, including the risk of fraud, and on the nature,
timing and extent of other audit procedures; and
• Perform alternative audit procedures designed to obtain relevant and reliable audit
evidence.

➢ Refusal is unreasonable & unable to obtain relevant and reliable audit evidence:- Modify
opinion as per SA 705
If the auditor concludes that management’s refusal to allow the auditor to send a confirmation
request is unreasonable, or the auditor is unable to obtain relevant and reliable audit evidence from
alternative audit procedures, the auditor shall communicate with those charged with governance in
accordance with SA 260. The auditor also shall determine the implications for the audit and the
auditor’s opinion in accordance with SA 705.

www.auditguru.in PARAM 5.15 | P a g e