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Panik AgarwalPanik Agarwal asked 12 months ago

The Question asks audit procedures in two different cases (i) when the financial statements are audited for the preceding period by
another auditor; and (ii) when financial statements are audited for the first time. Will the same procedures (same for both cases) as given in answer and also in Bhaskar book be applicable in both these cases, or some specific procedures will be applied in case when financial statements are audited for the first time ?

1 Answers
RaviRavi Staff answered 12 months ago

as per sa 510 there are same procedures for both situations 
this is old question and there is desi answer, simply explaining similar points as explained in sa 510
 
they said if audit was done in previous year  use audit report and audited financial statements
 
if its not done use other evidence such as external confirmations, physical verification with date of purchase, reconciliations etc
 
many time ICAI questions and answers are not perfect, doing q&a practice helps in understanding pattern and how to answer these imperfect questions 
 

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