KST Limited is engaged in manufacturing business. It appoints CA T to provide it an assurance report on its financial statements prepared on the…
CA Intermediate · Auditing and Ethics · MTP · May 2024
KST Limited is engaged in manufacturing business. It appoints CA T to provide it an assurance report on its financial statements prepared on the basis of historical financial information. The characteristic of such an engagement is that it involves gathering of sufficient appropriate evidence on basis of which limited conclusions can be drawn up by practitioner. Identify type of engagement. Which are two other features of such an engagement?
Suggested Answer and Working Notes:
As given above, the engagement involves gathering of sufficient appropriate evidence on the basis of which limited conclusion can be drawn up. It is a limited assurance engagement like review. Other two features of such type of engagement are: It provides lower level of assurance than reasonable assurance engagement.It performs fewer procedures than reasonable assurance engagement.
Topics: Nature, Objective and Scope of Audit
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