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

While auditing Corvin Ltd, the audit senior finds that a presumptively mandatory requirement in ISA 540 cannot be performed because of an unusual contractual restriction. The senior proposes to use an alternative procedure. Under ISA 200, which action is appropriate in exceptional circumstances?

In exceptional circumstances the auditor may depart from a relevant requirement only where an alternative audit procedure achieves the aim of that requirement. The reasons and the alternative performed must be documented. Departures are not routine and cannot be hidden or described as full compliance.

  1. ADepart from the requirement only if an alternative procedure achieves the aim of the requirement, and document the reasons for the departureCorrect
  2. BDepart from the requirement and document nothing, since alternatives are always acceptable
  3. CDepart from the requirement and state in the audit report that ISAs were followed in full
  4. DRefuse to depart, because ISAs allow no departures in any circumstance

Explanation

ISA 200 permits departure in exceptional circumstances only where an alternative procedure achieves the aim of the requirement, and the departure must be documented (ISA 230). Silent departure or claiming full compliance would be improper. A blanket ban on departures is incorrect.

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