Question: An external auditor finds an error in inventory valuation. How should this be communicated to the management? And if the management disagrees to rectify the error, what are the next steps an external auditor can take in dealing with this uncorrected misstatement?
It's urgent. I need answer from an expert. Please help.
COMMUNICATE THE ERROR OR DEFICIENCIES TO THE MANAGEMENT ORALLY
AND ENSURE THAT THEY WILL RECTIFY THE SAME ERROR WITH THE RESONABLE TIME
IF MANAGEMENT REFUSES TO CORRECT THE ERROR SO QUALIFY THE AUDITOR REPORT . . .
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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