CA Neha is appointed as auditor of a newly incorporated textile company. Before starting the audit, she checks whether the firm meets ethical…

CA Intermediate · Auditing and Ethics · MTP · September 2025
CA Neha is appointed as auditor of a newly incorporated textile company. Before starting the audit, she checks whether the firm meets ethical requirements or if there are any threats to independence. She also sends an audit engagement letter to the management. CA Neha is:
(A) developing audit programme.
(B) performing preliminary engagement activities.
(C) performing substantive procedures.
(D) conducting audit documentation.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

performing preliminary engagement activities.

Topics: Audit Strategy, Audit Planning and Audit Programme

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