M/s DEF & Associates have been appointed as the statutory auditor of JKL Ltd. for the first time for the financial year 2024-25. The engagement…

CA Intermediate · Auditing and Ethics · PYQS · September 2024
M/s DEF & Associates have been appointed as the statutory auditor of JKL Ltd. for the first time for the financial year 2024-25. The engagement partner, CA D, is briefing his engagement team about the need of Engagement Standards and Quality Control Standards in the areas of financial statement audits and in other types of assurance services. Out of the following which one point is not correct about why standards are needed?
(A) Standards equip professional accountants with professional knowledge & Skill.
(B) Standards ensure audit quality.
(C) Standards promote uniformity as audit of financial statements is carried out following these Standards.
(D) Standards ensure carrying out of audit against established benchmarks at par with local practices.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

Standards ensure carrying out of audit against established benchmarks at par with local practices.

Topics: Ethics and Terms of Audit Engagements

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