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ACCA Strategic Professional · Advanced Audit and Assurance (International) · International regulatory frameworks for audit and assurance services

Tulip Assurance plans to state in its auditor's report for Kestrel Ltd that the audit was conducted in accordance with ISAs. Which approach is required by ISA 200 before the auditor can make that statement?

The auditor must comply with all ISAs relevant to the audit, meeting every applicable requirement unless a standard or a conditional requirement is not relevant in the circumstances. Selecting only convenient standards, or only ISA 700, would not support a claim of ISA-compliant auditing.

  1. AThe auditor must comply with all ISAs relevant to the audit and any requirement of an ISA that is relevant must be met unless it is not applicable in the circumstancesCorrect
  2. BThe auditor may select the ISAs that suit the engagement and need not meet requirements the firm considers disproportionate
  3. CThe auditor need comply only with ISA 700 because it governs the report wording
  4. DThe auditor must comply with the IESBA Code but not with ISAs dealing with specific accounts such as inventory

Explanation

ISA 200 requires compliance with all ISAs relevant to the audit, and each requirement must be complied with unless the ISA is not relevant or the requirement is conditional and the condition does not exist. Cherry-picking is not allowed, and the claim of ISA compliance would then be unjustified.

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