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maam when determining the amount of testing to be undertaken at the final audit why is it important to consider the time remaining? I ask this cause an MCQ question says that it should be taken into account
I mean if we try to rush through then sufficient appropriate audit evidence will not be gathered. so I think audit firm shud not consider the time renaming, because if they do consider that then he compromises the credibility of auditor’s report.
Short time does not necessarily mean rushing – but rather choosing most appropriate SPs in the circumstances. So if, for example, there is 3 months in which to complete the audit, but, on average, customers take 3 months to settle their accounts, the auditor will not be able to rely on cash receipts to confirm recoverabililty of debts. So the sample of external confirmations may be more extensive than if there were 4 or 5 months before the auditor’s report will be signed.
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