Bansal Arora & Co., а Chartered Accountants firm, is currently performing an audit for Wool Ltd., a sizable manufacturing company. Mr. Bhavesh…

CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · May 2024
Bansal Arora & Co., а Chartered Accountants firm, is currently performing an audit for Wool Ltd., a sizable manufacturing company. Mr. Bhavesh Bansal, an experienced audit engagement partner, holds the responsibility of ensuring that the audit engagement aligns with the professional standards, adheres to regulatory requirements, and complies with the legal obligations. His duties encompass the overall supervision, direction, and the final issuance of the audit report. While conducting the audit, the engagement team encounters a complex issue pertaining to the valuation of the company's inventory. Within the team, there are difference of opinions on how to address this matter, resulting in a contentious situation. What is Mr. Bhavesh's responsibility in this situation?
(A) Mr. Bhavesh shall adhere to the firm's policies only for addressing and resolving differences of opinion.
(B) Mr. Bhavesh should secure management's representation concerning the valuation and proceed with further audit procedures.
(C) Mr. Bhavesh should ensure that appropriate consultation occurs within the engagement team and, if necessary, with individuals at an appropriate level within or outside the firm.
(D) Mr. Bhavesh should communicate the issue to the client's management for resolution.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Mr. Bhavesh should ensure that appropriate consultation occurs within the engagement team and, if necessary, with individuals at an appropriate level within or outside the firm.

Topics: Standard on Auditing (SA), Reporting

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic