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

Verma & Associates are reviewing Tapti Engineering Ltd. After the review is substantially complete, management refuses to give access to key records, imposing a scope limitation, and the practitioner cannot form a conclusion. Which course is consistent with SRE 2400 (Revised)?

Where the review is substantially complete when management imposes a scope limitation, the practitioner may complete the review as far as possible, disclaim a conclusion, and explain the limitation in the report paragraph describing the basis for the disclaimer. Withdrawal depends on practicality and the stage of completion.

  1. AThe practitioner must always withdraw immediately, whatever the stage
  2. BThe practitioner may decide to complete the review to the extent possible, disclaim a conclusion and explain the scope limitation in the basis paragraph of the reportCorrect
  3. CThe practitioner must issue a qualified conclusion ignoring the limitation
  4. DThe practitioner should issue an unmodified conclusion on the work completed

Explanation

The practicality of withdrawal depends on the stage of completion. Where the review is substantially completed, the practitioner may complete it to the extent possible, disclaim a conclusion and explain the limitation in the paragraph describing the basis for disclaiming. Immediate withdrawal is not mandatory in all cases.

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