CS Professional · Compliance Management, Audit and Due Diligence · Audit Engagement
The auditor of a State Government board is appointed under the law governing the board, and that law sets out the auditor's responsibilities and powers, including access to records. The law prescribes the engagement terms in sufficient detail. What does SA 210 say about the auditor's approach?
Where law mandates the appointment and prescribes the terms in sufficient detail, the auditor may still see benefits in issuing a fuller audit engagement letter than the limited letter permitted by paragraph 11 of SA 210. Statutory appointment does not prohibit a fuller letter.
- ANo engagement letter of any kind may be issued because the law is sufficient
- BThe auditor may still consider there are benefits in issuing a fuller engagement letter than the minimum permitted by paragraph 11Correct
- CThe auditor must refuse the engagement since appointment is by law
- DThe auditor must wait for the board to appoint a second auditor for independence
Explanation
SA 210 notes that for entities such as government bodies, law often mandates the appointment and sets out the auditor's responsibilities and powers. Even where the law prescribes the terms in sufficient detail, the auditor may consider there are benefits in issuing a fuller engagement letter than paragraph 11 permits.
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