Page 345 - CA Inter Audit PARAM
P. 345
CA Ravi Taori
The auditor considers the justification given for the request, particularly the implications of a restriction on
the scope of the audit engagement.
A change in circumstances that affects the entity’s requirements or a misunderstanding concerning the
nature of the service originally requested may be considered a reasonable basis for requesting a change in
the audit engagement.
In contrast, a change may not be considered reasonable if it appears that the change relates to information
that is incorrect, incomplete or otherwise unsatisfactory. An example might be where the auditor is unable
to obtain sufficient appropriate audit evidence regarding receivables and the entity asks for the audit
engagement to be changed to a review engagement to avoid a qualified opinion or a disclaimer of opinion.
Hence Deepa Ltd.’s request for the audit engagement to be changed to a review engagement to avoid a
qualified opinion or a disclaimer of opinion is not reasonable.
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