CS Professional · Compliance Management, Audit and Due Diligence · Audit Engagement

CA Firm Desai & Associates has audited Kaveri Agro Ltd for six years. In April, shortly after completing the previous year's audit, the partner reviews whether the firm remains independent and whether the client relationship should continue. Under SA 300 guidance, how should the timing of this review be viewed?

The timing is acceptable. For continuing engagements, initial continuance and independence procedures often take place shortly after or in connection with the previous audit, and the auditor keeps considering independence throughout the engagement as conditions and circumstances change.

1. AIt is wrong, because independence is checked only once at first appointment
2. BIt is acceptable, and such initial procedures on continuing engagements often occur shortly after or in connection with the previous audit, though consideration continues throughout the engagementCorrect
3. CIt is wrong, because it must be done only after the audit fieldwork begins
4. DIt is acceptable only if the client management requests it in writing