CA Final · Advanced Auditing, Assurance and Professional Ethics · Group Audits
SA 600 (Using the Work of Another Auditor) states when it becomes operative. According to the text of the Standard, it is operative for all audits relating to which accounting periods?
SA 600 became operative for all audits relating to accounting periods beginning on or after April 1, 2002. The test is the start date of the accounting period, not its end date, so the other options misstate either the test or the year.
- APeriods beginning on or after April 1, 2002Correct
- BPeriods ending on or after April 1, 2002
- CPeriods beginning on or after April 1, 2012
- DPeriods ending on or after March 31, 2002
Explanation
The Standard says it becomes operative for all audits relating to accounting periods beginning on or after April 1, 2002. Options that use 'ending on or after' change the test from the start of the period to its end. The 2012 option uses the wrong year.
Did you get it right without looking?
One question tells you little. A timed set on Group Audits shows your real accuracy, how long you take and where you lose marks.
More Group Audits questions
- CA Raman is asked to act as principal auditor of Sundaram Textiles Ltd, some components of which are audited by other auditors. Under SA 600…
- Anand & Associates audit Sahyadri Foods Ltd, whose own operations are small. Over 85% of the consolidated financial information relates to s…
- CA Vikram has been appointed auditor of Ganga Pharma Ltd. and has never visited its two subsidiary components, which another auditor audits.…
- Four auditors are each considering whether they can act as principal auditor of a group. Applying the factors in SA 600 Using the Work of An…
- Nair & Co are principal auditor of Himalaya Pharma Ltd. A subsidiary representing about 30% of group assets is audited by Shah & Co. The sub…
- Under SA 600 (Using the Work of Another Auditor) as set out in the official text, to which audits does the Standard become operative?