CA Intermediate · Auditing and Ethics · Audit Strategy, Audit Planning and Audit Programme

While planning the audit of Sundaram Engineering Ltd, the engagement partner finds that the audit team's planned procedures will be performed largely by junior staff. The partner decides to hold a discussion among key team members on the susceptibility of the financial statements to material misstatement. Which is the correct audit response under the Standards on Auditing?

The auditor should hold the team discussion with the engagement partner and key members participating, and the partner decides which matters are passed on to absent members. SA 315 requires this for every audit during planning, not only for listed companies or after fieldwork.

1. ASkip the discussion because it is required only for listed companies
2. BHold the discussion and ensure the engagement partner and other key members take part, with the partner deciding which matters are communicated to team members not presentCorrect
3. CHold the discussion only after the audit fieldwork is completed
4. DDelegate the entire discussion to the junior staff, as partner involvement is prohibited