Search This Blog

Thursday, August 14, 2025

ITC JANUARY 2022 SOLUTION PAPER 4 QUESTION 2 5 © SAICA 2022


Part (e) Discuss the matters your audit firm should consider with regard to its reporting responsibility, based on the information in section 4.  Exclude the detailed steps to be followed when reporting the matter.  Exclude any impact this matter may have on the performance of the audit of Barista’s financial statements.


ANSWER

The audit firm has a legal and ethical duty to report the matter.

  • It's a "reportable irregularity." The act of reversing invoices to delay paying VAT is an unlawful and potentially fraudulent act.

  • Must report to IRBA. The firm must report this issue to their regulatory body, the IRBA.

  • Disclose in the audit report. This issue must also be mentioned in a specific section of the final audit report.


No comments:

Post a Comment

Followers