CAF-8 · Chapter 2 · Question 4 of 10
For a recurring audit, ISA 210 requires the auditor to consider whether terms need to be revised. Which event is most likely to trigger a revision of the engagement letter?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) There is a significant change in the entity's senior management or ownership.
Explanation
A recent change of senior management, ownership, size, or legal requirements are specific indicators that the entity might misunderstand the audit objective, requiring a revised engagement letter.
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