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CS Professional · Compliance Management, Audit and Due Diligence · Audit Principles and Techniques

An auditor of Narmada Foods Pvt Ltd concludes that the audit evidence obtained so far is not sufficient and appropriate. Which course is consistent with SA 200 for responding?

The auditor may extend the work performed in applying one or more requirements. SA 200 permits evaluating further evidence from other SAs, extending work, or performing other necessary procedures. Management assurance or unchanged reporting does not cure insufficient and inappropriate evidence.

  1. AExtend the work performed in applying one or more requirementsCorrect
  2. BIssue the report unchanged because the SAs were followed procedurally
  3. CAsk management to confirm that the evidence is adequate
  4. DRely on last year's conclusions without further work

Explanation

SA 200 says the auditor may evaluate whether further evidence will arise from other SAs, extend the work performed, or perform other procedures judged necessary. Merely following procedures or relying on management or prior-year conclusions does not remedy insufficient evidence.

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