If management or those charged with governance do not demonstrate a commitment to internal control over noncompliance with laws and regulations,then the auditor should withdraw from the engagement.

Question

Quizplus · Accepted Answer

The auditor's decision to withdraw from an engagement due to management's lack of commitment to internal controls over compliance with laws and regulations depends on the severity of the issues and the applicable auditing standards. Withdrawal is an extreme step and other actions, such as discussing the matter with governance, may be appropriate first.

If Management or Those Charged with Governance Do Not Demonstrate