CA Inter P5 · Chapter 11 · Question 8 of 13
Under SA 210, which of the following is a precondition for an audit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The use by management of an acceptable financial reporting framework and management's agreement that it acknowledges its responsibilities
Explanation
SA 210 requires the auditor to determine that the financial reporting framework is acceptable and to obtain management's agreement that it acknowledges and understands its responsibility for preparing the financial statements, for internal control and for providing the auditor with access and information. If the preconditions are not present, the auditor shall not accept the engagement unless required by law.
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