Preliminary engagement activities include certain activities to be performed by an auditor while planning an audit. Discuss such activities briefly.…
CA Intermediate · Auditing and Ethics · RTP · May 2024
Preliminary engagement activities include certain activities to be performed by an auditor while planning an audit. Discuss such activities briefly. How performing such activities assists an auditor?
Suggested Answer and Working Notes:
(a) Preliminary engagement activities include following activities: - (A) Performing procedures regarding the continuance of the client relationship (B) Evaluating compliance with ethical requirements, including independence (C) Establishing an understanding of terms of engagement Performing preliminary engagement activities assists auditor in identifying and evaluating events or circumstances that may affect auditor's ability to plan and perform audit engagement.
Topics: Audit Strategy, Audit Planning and Audit Programme
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