Acca aa s21 Notes

September 2021 to June 2022 exams
Watch our free ACCA AA lectures
111

---

Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
The auditor will usually obtain written representations (see Chapter 28) from management and 
TCWG:
๏
Acknowledging their responsibilities for the prevention and detection of fraud;
๏
Confirming that they have disclosed to the auditor their knowledge of actual, suspected or 
alleged fraud.
Note that any fraud (or error) that is 
immaterial
does 
not
affect the audit opinion and so will 
not
be 
drawn to the attention of the users of financial statements.
3. Laws and Regulations
As for fraud, it is management (and TCWG) who is responsible for the prevention and detection of 
Non-Compliance with Laws and Regulations (NOCLAR).
NOCLAR is defined as acts of commission or omission, intentional or unintentional, committed by a 
client or TCWG ... contrary to laws or regulations. The definition excludes personal misconduct (i.e. 
unrelated to business activities).
Laws and regulations may affect the financial statements:
๏
Directly
(e.g. statutory requirements for the form and content of financial statements); or
๏
Indirectly
through the entities operations (e.g. breach of environmental regulations resulting in 
fines that should be recognised as liabilities).
The auditor:
๏
Is 
not
responsible for preventing NOCLAR;
๏
Cannot
be expected to detect NOCLAR;
๏
Is responsible for obtaining 
sufficient appropriate audit evidence
regarding compliance with 
‘direct’ laws and regulations; 
๏
Has