Sa 210 param ca inter true and false

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In ca inter param, in true and false pg no. – 192, cno no. Sa 210-3 , how the ans is incorrect, in this question it’s talking about engagement/appointment letter or audit engagement letter?
In pg 193 cno sa 210- 5{T &F} – not understood the Q, here how auditor will agree to management ‘s responsibilities??
Please reply..

2 Answers

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Ravi Staff answered 4 years ago

210-3
Answers are taken from ICAI material, this was question was asked in Nov 17 exams old course. Personally i am not happy with answer, engagement letter in recurring audits is not mandatory and depends on circumstances. Earlier ratification order was required to passed in each AGM confirming appointment of auditor for 5 AGMs, so every year auditor has to send certificate and consent, but that doesnt mean engagement letter, now requirement to pass ratification order every year is not required, so sending certificate and consent is also not required.
in short answer is not appropriate, it should be as per SA 210, it depends on circumstances.

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Ravi Staff answered 4 years ago

210-5
Auditor should make agreement with client where management agrees to their responsibility, regarding financial statements.
Questions says it is not required, so it is incorrect