- 10 Marks
AA – Nov 2019 – L2 – Q5a – Planning and Approach for Audit and Assurance Engagements
Discusses the main actions to establish preconditions for an audit and outlines conditions for changing audit engagement terms.
Question
You have been assigned as the training manager in your audit firm. The Partners of your firm tasked you to take the newly recruited trainees through ISA 210: Agreeing the Terms of Audit Engagement. This deals with the auditor’s responsibilities in agreeing the terms of the audit engagement with management and those charged with governance.
The ISA states that the auditor shall agree to the terms of the audit engagement with management or those charged with governance, as appropriate, and these terms can be recorded in an audit engagement letter or other suitable form of written agreement.
Required:
i) Describe the main actions an auditor should take in order to establish whether the preconditions for an audit are present. (6 marks)
ii) Outline when an auditor should change the terms of the audit engagement in relation to a recurring audit.
(4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Engagement, ISA 210, Preconditions, Recurring Audits, Terms of Engagement
- Level: Level 2