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CS Professional · Internal and Forensic Audit · Internal Audit Engagements and Planning

Before accepting an initial engagement for Ganga Foods Ltd, auditor Priya Nair wishes to review the predecessor auditor's working papers. According to SA 300, when can such an arrangement be made?

Under SA 300, arrangements with the predecessor auditor, such as reviewing the predecessor's working papers, may be made in an initial audit unless prohibited by law or regulation. The legal prohibition is the only limit stated in the standard.

  1. AOnly if the predecessor consents to publish them to shareholders
  2. BAlways, even if law or regulation prohibits it
  3. CUnless prohibited by law or regulation, arrangements may be made with the predecessor auditor, for example to review the working papersCorrect
  4. DNever, as working papers of a predecessor cannot be considered in planning

Explanation

SA 300 states that, unless prohibited by law or regulation, arrangements to be made with the predecessor auditor, such as reviewing the predecessor's working papers, may be considered for initial audits. Option A invents a condition and option B ignores the legal limit.

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