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

Mehta & Co., statutory auditors of Kaveri Textiles Ltd, are drafting the engagement letter. Under the illustrative terms of SA 210, which statement correctly describes the access that management is to provide to the auditor?

Management is to give the auditor access, at all times, to all information, including books, accounts, vouchers and records, wherever kept, and including books of account maintained in electronic mode. The access is not limited to the Head Office or to fieldwork periods, and it extends to fraud-related reports.

  1. AAccess only to records kept at the Head Office, since other locations are outside the audit scope
  2. BAccess, at all times, to all information including books of account maintained in electronic mode, whether kept at the Head Office or elsewhereCorrect
  3. CAccess to books of account only during the audit fieldwork period agreed in the engagement letter
  4. DAccess to financial records but not to reports on internal reporting of frauds such as vigil mechanism reports

Explanation

The illustrative engagement letter terms require access, at all times, to all information including books, accounts, vouchers and other records, whether kept at the Head Office or elsewhere, and this includes books maintained in electronic mode. Restricting access to the Head Office or to fieldwork periods contradicts this. Fraud reports such as vigil mechanism reports are also within the access requested.

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