A5/M6 Reporting on Compliance

Question 1

what is compliance reporting?

Answer 1

Auditor may be asked to:

1. report on compliance with contractual agreements or regulatory requirements in connection with a financial statement audit. Auditor may give NEGATIVE assurance in form of a statement that there is no identified instances of noncompliance; or auditor has expressed an unmodified or qualified opinion on the FS
2. report on an attestation engagement regarding entity’s compliance with requirements of specific laws and regulations or on internal control over compliance. may be engaged in either EXAMINATION (provide reasonable assurance/opinion) and AUP (provide no assurance/findings) and address on 2 types:
   + compliance with specified requirements
   + internal control over compliance
   or both
3. report on compliance and internal control over compliance as part of a single audit engagement when auditing a recipient of federal financial assistance

Question 2

what is included in the written representations?

Answer 2

almost all of responsibilities are management’s