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

Midway through the audit of Vinay Steels Ltd, management asks the auditor to change the engagement to a review engagement that conveys a lower level of assurance, citing only that the audit is taking longer than expected. The auditor finds no other reason. Which action is correct under SA 210?

The auditor must determine whether there is reasonable justification for the change to a lower-assurance engagement. Since longer audit time alone gives none, the auditor shall not agree to the change. Written recording of new terms applies only when a justified change is accepted.

  1. AAgree to the change, since management has requested it
  2. BAgree only if the new terms are recorded in an engagement letter, regardless of the reason
  3. CDetermine whether there is reasonable justification; not agree to the change if there is noneCorrect
  4. DContinue the audit and ignore the request without any consideration

Explanation

SA 210 requires the auditor, when asked to move to a lower level of assurance before completing the engagement, to determine whether there is reasonable justification. The auditor shall not agree to a change without reasonable justification. Recording in writing applies only to an accepted change, so option B is wrong.

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