CA Inter P5 · Chapter 2 · Question 6 of 11
Rajat & Co. has been appointed auditor of Jivika Ltd. for the first time. Which additional planning consideration applies specifically because it is an initial audit engagement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Arranging, where permitted, to review the predecessor auditor's working papers and planning procedures for opening balances under SA 510
Explanation
SA 300 notes that in an initial audit the auditor may need to expand planning activities, including arrangements with the predecessor auditor to review its working papers and procedures required by SA 510 regarding opening balances. The predecessor's report alone is not sufficient evidence, and risk assessment cannot be skipped.
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