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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Professional appointments

During an audit of Brightwell Ltd, the finance director asks the auditor to change the engagement to a review engagement because the audit is taking too long and costing too much. There is no reasonable justification for the request other than cost and convenience. Under ISA 210, what is the auditor's appropriate response?

The auditor should not agree to the change without reasonable justification, and a request based only on cost or convenience is not sufficient. If management will not allow the audit to continue, the auditor should consider withdrawing and whether any obligation exists to report the circumstances to others.

  1. AAgree to the change, as the client is entitled to choose the level of assurance
  2. BAgree to the change but keep the audit work already done as supporting evidence for the review report
  3. CNot agree to the change where there is no reasonable justification, and if unable to continue the audit, consider withdrawing and reporting as appropriateCorrect
  4. DContinue the audit but remove the engagement letter terms about scope

Explanation

ISA 210 says that before agreeing to change an audit to a lower level of assurance engagement, the auditor must determine there is reasonable justification. Cost or convenience alone is not sufficient. If management will not permit the audit to continue, the auditor considers withdrawing and whether there is an obligation to report the circumstances.

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