Report by Exception

Question 1

report by exception?

Answer 1

companies act 2006 requires the auditor to report by exception in certain situations

Question 2

in which situations must the auditor report by exception?

Answer 2

• if adequate accounting records haven’t been kept
• FS aren’t in agreement with underlying records
• director’s remuneration disclosures haven’t been made
• information and explanations necessary for the audit weren’t received
• corporate governance statement hasn’t been prepared by a listed company
• material misstatements haven’t been identified in the director’s report

Question 3

auditor’s responsibilities in relation to companies act 2006 UK corporate governance code?

Answer 3

• report by exception if no corporate governance statement is included
• report on company’s compliance with corporate governance code

Question 4

when should an auditor report by exception?

Answer 4

• adequate accounting records haven’t been maintained
• all information required for the audit was not obtained