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Will the responsibilities of an auditor be affected by the knowledge of a CFO acting illegal?...

Will the responsibilities of an auditor be affected by the knowledge of a CFO acting illegal? if yes, how would the auditors responsibilities be affected?
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Answer #1

Yes, the responsibilities of an auditor will be affected if a CFO is acting illegal.

The auditors responsibilities would be affected in following ways:-

a) Auditor is held respnsible for obtaining reasonable assurance that the financial statements are representing true and fair view. This will not be done properly as CFO will guide in a wrong manner.

b)Auditor’s responsibility is to express an independent, objective opinion on the financial statements of a company, which will not be possible in this case.

c) CFO will be handling all the records and summaries and therefor he will be giving it to auditor in such a manner that illegal acts are not found.

d)Any additional information if required by management will be manupulated by the CFO

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