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CA Intermediate · Auditing and Ethics · Audit Strategy, Audit Planning and Audit Programme

Ganga Pharma Ltd. has been audited by Rao & Associates for the past three years. For the current year, the engagement partner is deciding on preliminary engagement activities. Which of the following is NOT among the activities SA 300 requires at the start of the current audit engagement?

Obtaining the Registrar of Companies' approval of the audit plan is not a required preliminary activity. SA 300 requires continuance and independence procedures, quality management activities under SA 220, and agreeing the engagement terms, but no regulator approves the auditor's plan.

  1. APerforming procedures on continuance of the client relationship and evaluating compliance with ethical requirements including independence
  2. BEstablishing an understanding of the terms of the engagement
  3. CObtaining the written approval of the Registrar of Companies on the audit planCorrect
  4. DPerforming the required activities under SA 220 regarding quality management

Explanation

Preliminary engagement activities include continuance procedures, ethical compliance and independence evaluation, and understanding the terms of engagement. No approval of the plan from the Registrar of Companies is needed for any audit. Therefore that option is not a required activity.

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