ACCA AA · Chapter 5 · Question 3 of 9
For a recurring audit, which of the following would most likely cause the auditor to issue a revised engagement letter?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A significant change in the ownership of the entity
Explanation
ISA 210 lists factors that may make it appropriate to revise the terms of engagement, including a significant change in ownership or senior management, changes in the nature or size of the business, changes in legal requirements or the framework, and indications that the client misunderstands the audit. Routine staffing changes and minor operational events do not require a new letter.
More Engagement acceptance and audit planning MCQs
- Q5Consider the following procedures: 1. Enquiries of management and others within the entity 2. Analytical procedures 3. Observation and…
- Q6What is the main purpose of the engagement team discussion required by ISA 315 and ISA 240?
- Q7Which of the following procedures would normally be performed at the final audit visit rather than at the interim audit?
- Q8At the interim audit of Quoin Co, the auditor tested controls over payroll for the first nine months of the year and found them operating…
- Q9Which of the following is a benefit of adequate audit planning?