Question 2 is generally asked in finals —- SA 220 is applicable whenever new partner takes over work of old partner because of any reason, may be health issues / death / lack of time with existing partner etc, after take over he has to review work done under earlier partner in detail and you have to explain what to do in review as per SA 220
Question 3 SA 200 Objectives of audit is applicable, explain objectives properly, explain on opinion is our job , appropriateness of decision is not our job but law may ask us to comment on appropriateness give reference of Sec 143(1) / CARO 2016.. see ket to remember of first question in SA 200 of notes
please comment if still it is unclear
Q2 b aapne class me discuss kra h that if it is treated as negligence. SA 220 clearly specifies to review b4 finalising the work and if u take over the work of other partner due to any reason it’s auditors responsibility to review the work b4 signing the report and if any misstatements found in the financial statements and this negligence is proven then he will b held responsible.
Okay thank you sir..
But can u explain further regarding q.no 3
Aditi overall objective of audit likhna h Usme to obtain reasonable assurance that the fst statements r free from material misstatements due to fraud or error, thereby enabling the auditor to draw a conclusion that the financial statements are prepared in.material respects, according to applicable frf.
And to report on.true and fair view of fst.
But the law and regulations may extend the objective of audit that to comment on propriety of business. Eg in CARO 2016, reporting on certain matters in.para 3 and reporting of sec 143(3) 10 clauses.
Thank you so much Shubham
Most wlcm Aditi Sharma