Kamya Traders Ltd. asks its auditor to skip confirming a large receivable from an overseas customer because obtaining the reply would take time and add cost. No alternative procedure is available to obtain evidence on that balance. Per SA 200, the auditor should recognise that:

Correct answer: D) Difficulty, time or cost involved is not in itself a valid basis for omitting an audit procedure for which there is no alternative

Explanation

SA 200 accepts that an audit is subject to time and cost constraints, but states that difficulty, time or cost is not in itself a valid basis for omitting a procedure for which there is no alternative or for being satisfied with less than persuasive evidence. A written representation cannot replace evidence that is expected to be available, and an Other Matter paragraph does not cure a scope gap.