1. Professional
Responsibilities & Liabilities
ISA 250

2. Basic Rule
Responsibility of Management to abide by
regulations

3. Auditor role
Reasonable assurance..free from fraud or
error (ISA 200)

4. Auditor role
Sufficient, appropriate evidence..compliance
with direct effect regulations
Tax Co. Law

5. Auditor Procedures
Understand generally the regulations
See how entity is complying
Talk to those responsible
Get written confirmation

6. General Understanding
Update existing understanding
Ask management about fundamental ones
Ask management about their compliance
Ask management about how they identify,
evaluate & account for litigation claims

7. indicators
• Investigated by government
• Fines
• Payments to government employees
• Excessive agents fees
• Unusual cash payments
• Unusual transactions with tax haven
companies