CA Puneet is appointed as an auditor of Kamla Limited for the F.Y. 2023-24. The management of Kamla Limited has requested the auditor to change the…

The auditor may decide not to send a new audit engagement letter or other written agreement each period. However, a significant change in nature or size of the entity's business is one of the factors which may make it appropriate to revise the terms of the audit engagement. In the given situation, Kamla Limited has diversified its business, and few new products have also been introduced by the company which is indicative of significant change in nature or size of the entity's business. In view of the above, CA. Puneet can agree to the request made by the management to change the terms of the audit engagement. Therefore, the request of Management to change the terms of audit engagement is appropriate. A request from the client for the auditor to change the engagement may result from: a change in circumstances affecting the need for the service.a misunderstanding as to the nature of an audit or related service originally requested.a restriction on the scope of the engagement, whether imposed by management or caused by circumstances.