CA Radha is appointed as an auditor of a PVC Ltd. for the first time. A detailed set of instructions has been prepared by her office and handed over…
CA Intermediate · Auditing and Ethics · MTP · May 2025
CA Radha is appointed as an auditor of a PVC Ltd. for the first time. A detailed set of instructions has been prepared by her office and handed over to assistants in engagement team. During the course of audit, she noticed that company is also producing substantial quantities of scrap generated during manufacturing process. However, no instructions have been given to engagement team in this regard. What should be proper course of action by CA Radha?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
She should modify earlier set of instructions.
Topics: Audit Strategy, Audit Planning and Audit Programme
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