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

Halfway through auditing Gupta Pharma Ltd., management asks the auditor to change the engagement to a review engagement that gives a lower level of assurance, citing only that the audit is 'inconvenient'. The auditor finds no other basis. Which statement is correct under SA 210?

The auditor shall not agree to the change. When asked to move to an engagement with lower assurance, the auditor must determine whether reasonable justification exists, and SA 210 bars agreeing to a change without it. Inconvenience alone is not reasonable justification.

  1. AThe auditor may agree, as the client is free to choose the level of assurance at any time
  2. BThe auditor may agree if the change is recorded orally with the audit committee chairman
  3. CThe auditor must agree, since the request was made before the engagement was completed
  4. DThe auditor shall not agree to the change, as there is no reasonable justification for itCorrect

Explanation

On a request to change to an engagement conveying lower assurance before completion, the auditor must determine whether reasonable justification exists. SA 210 states the auditor shall not agree to a change in terms where there is no reasonable justification. Mere inconvenience is not justification, and even a justified change must be recorded in writing, not orally.

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