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

Patel & Associates has audited Sunrise Foods Ltd for three years. For the new year, the partner asks when client continuance and ethical requirement considerations, including independence, should be performed. Which statement is consistent with SA 300?

Continuance and ethical considerations, including independence, are an ongoing exercise throughout the engagement as circumstances change. Initial procedures are completed before other significant audit work and, for continuing engagements, often occur shortly after or in connection with completing the previous audit.

1. AThey are done only once, at the time of first appointment
2. BThey are done only after the audit report is signed
3. CThey are done after substantive procedures are completed
4. DThey are considered throughout the engagement as conditions change, with initial procedures often shortly after or in connection with the previous audit's completionCorrect