Unnati Rathi RathiUnnati Rathi rathi asked 6 months ago
1 Answers
RaviRavi Staff answered 6 months ago

We have discussed these issues in our lecture, below can be answer.
Please mention source of the question in comment section, so that all can refer it.
Considerations When Accepting the Engagement
Following 3 points should be highlighted

  1. Application of SAs
    SA 200 requires the auditor to comply with all SAs relevant to the audit. In the case of an audit of a single financial statement or of a specific element of a financial statement, this requirement applies irrespective of whether the auditor is also engaged to audit the entity‟s complete set of financial statements. If the auditor is not also engaged to audit the entity‟s complete set of financial statements, the auditor shall determine whether the audit of a single financial statement or of a specific element of those financial statements in accordance with SAs is practicable.
  2. Acceptability of the Financial Reporting Framework
    SA 210 requires the auditor to determine the acceptability of the financial reporting framework applied in the preparation of the financial statements. In the case of an audit of a single financial statement or of a specific element of a financial statement, this shall include whether application of the financial reporting framework will result in a presentation that provides adequate disclosures to enable the intended users to understand the information conveyed in the financial statement or the element, and the effect of material transactions and events on the information conveyed in the financial statement or the element.
  3. Form of Opinion
    SA 210 requires that the agreed terms of the audit engagement include the expected form of any reports to be issued by the auditor . In the case of an audit of a single financial statement or of a specific element of a financial statement, the auditor shall consider whether the expected form of opinion is appropriate in the circumstances.

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