M/s RJ & Associates, Chartered Accountants, has been auditing the books of GP Resorts Private Limited for the past two years. GP Resorts Private…
CA Intermediate · Auditing and Ethics · MTP · January 2025
M/s RJ & Associates, Chartered Accountants, has been auditing the books of GP Resorts Private Limited for the past two years. GP Resorts Private Limited has experienced a significant increase in visitors due to a successful marketing campaign. This increase in number of visitors has prompted the Resort to introduce new services, such as event hosting, which contribute to higher revenue. Whether M/s RJ & Associates should issue a revised audit engagement letter to the GP Resorts Private Limited?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
Yes, a new engagement letter is required due to significant changes in the nature and size in the business of the GP Resorts Private Limited.
Topics: Risk Assessment and Internal Control
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