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CS Professional · Internal and Forensic Audit · Internal Audit Engagements and Planning

Mehta & Co. is appointed auditor of Ganga Steels Ltd for the first time. When planning, which additional step relating to working papers may the auditor consider?

In an initial audit the auditor may arrange, unless law or regulation prohibits, to review the predecessor auditor's working papers. SA 300 lists this among additional planning matters, alongside procedures to obtain sufficient appropriate evidence on opening balances.

  1. AArranging, unless prohibited by law, to review the predecessor auditor's working papersCorrect
  2. BDestroying the predecessor's working papers to avoid bias
  3. CSkipping procedures on opening balances since they were audited earlier
  4. DUsing the predecessor's opinion as sufficient evidence of opening balances

Explanation

SA 300 notes that for initial audits the auditor may consider arrangements with the predecessor auditor, such as reviewing the predecessor's working papers, unless prohibited by law. It also requires procedures for opening balances, so skipping them is wrong.

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