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CA Final · Advanced Auditing, Assurance and Professional Ethics · Review of Financial Information

Nair & Co. accepted a review of Vindhya Steels Ltd. Late in the engagement, after substantially completing procedures, management refuses to give access to certain records, so the practitioner cannot form a conclusion. Law does not require the practitioner to continue. Which course is consistent with SRE 2400 (Revised)?

Since the review is substantially complete, the practitioner may complete it to the extent possible, disclaim a conclusion, and explain management's scope limitation in the paragraph describing the basis for disclaiming a conclusion, rather than withdrawing or issuing an unsupported conclusion.

  1. AIssue an unmodified conclusion because most work is done
  2. BWithdraw in every case, since completing the review is never allowed
  3. CDecide whether to complete the review to the extent possible, disclaim a conclusion, and explain the scope limitation in the basis for disclaiming a conclusion paragraphCorrect
  4. DReplace the conclusion with an adverse conclusion without explaining the limitation

Explanation

The practicality of withdrawal depends on the stage of completion. If substantially completed, the practitioner may complete the review as far as possible, disclaim a conclusion and explain the limitation in the basis paragraph. Option B overstates, and an unmodified or adverse conclusion is unsupported by evidence.

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