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

For the current audit of Tulsi Retail Ltd, the engagement team wants to use evidence gathered in the previous year's audit about the title deeds of the head office. Under SA 200, when may such information from previous audits be used as audit evidence?

Previous audit information may be used as evidence only if the auditor has determined whether changes since the previous audit may affect its relevance to the current audit. It is not automatically acceptable and is not prohibited, nor does it need client consent.

  1. AAlways, without any further consideration, since it is cumulative
  2. BNever, because evidence must be generated only in the current year
  3. COnly if the audit client agrees in writing
  4. DProvided the auditor has determined whether changes have occurred since the previous audit that may affect its relevance to the current auditCorrect

Explanation

SA 200 notes that audit evidence is cumulative and may include information from previous audits, provided the auditor has determined whether changes have occurred since the previous audit that may affect its relevance to the current audit. It is neither always usable nor barred, and no client consent is needed.

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