During statutory audit of Orient Chemicals Ltd., the auditor, CA Raj, obtained an understanding of the company's internal control system as part of…

Auditor's Objective As per SA 265, the auditor's objective is to communicate appropriately to those charged with governance and management the deficiencies in internal control identified during the audit.The auditor uses professional judgment to determine which deficiencies are of sufficient importance to merit the attention of management and those charged with governance. Auditor's responsibilities regarding communicating deficiencies in internal control to those charged with governance and management are: Determine whether, on the basis of the audit work performed, one or more deficiencies in internal control have been identified. If one or more deficiencies in internal control have been identified, determine, on the basis of the audit work performed, whether, individually or in combination, they constitute significant deficiencies. Communication in writing significant deficiencies in internal control identified during the audit to those charged with governance on a timely basis giving their description, explanation of potential effects and sufficient information to those charged with governance and management to understand context of communication.