• Skip to primary navigation
  • Skip to main content
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA AA:
  • Notes
  • Lectures
  • Practice Questions
  • AA Flashcards
  • Revision lectures
  • Revision Mock Exam
  • Revision Test
  • Forums
  • Ask the Tutor
  • Ask AI (New!)

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

AA Chapter 24 Questions

VIVA

 

Reader Interactions

Comments

  1. thanpap72 says

    April 19, 2020 at 3:13 pm

    Question 2. The letter of engagement is on the permanent file (at least this is the correct answer). Since the engagement letter is signed every year for each annual audit appointment, how can it be that is included in the Permanent file. Shouldn’t it be in the current?

    Log in to Reply
    • Kim Smith says

      April 20, 2020 at 10:05 am

      ISA 210 does not require a letter to be signed each year (such “rubber stamping” might even devalue it). As indicated by the last point on page 47 of the notes it should be updated for changes – when clearly it would have to be signed.

      For recurring audits ISA 210 requires only that the auditor assess whether circumstances require the terms to be revised or if there is a need to remind the client of existing terms. To remind the entity of existing terms does not mean the engagement letter has to be reissued (the reminder could be documented in a separate letter).

      Log in to Reply
      • EmilyEze says

        September 19, 2021 at 2:39 pm

        So even though for example updating audit fees constitutes changes, because ISA 210 does not requires an engagement letter to be signed every year, as long as the term of the contract are unchanging it is a document included in the permanent audit file?

      • Kim Smith says

        September 20, 2021 at 10:39 am

        The engagement letter will describe the basis of the fee – rather than specify a fixed monetary amount. It is quite usual for the actual fee invoiced to be a matter of negotiation because the audit opinion cannot be constrained by a budget. Please use the ASK the Tutor forum for technical queries to ensure they are answered on a timely basis.

  2. Omra says

    March 13, 2020 at 8:40 am

    Q5. The EQCR can be hot before the audit report is signed, and cold after the audit report. So correct answer should be anytime before and after ? Unless cold review is not considered EQCR

    Log in to Reply
    • Kim Smith says

      March 13, 2020 at 11:34 am

      By definition an EQCR must be before auditor’s report is signed – i.e. “hot”.

      Log in to Reply
      • basketfreak15 says

        March 29, 2020 at 11:42 am

        Sir,
        I’m sorry but this is very confusing as the AA study notes speak of the hot and cold EQCR without pointing out that the cold review is no an EQCR.

        Many thanks

      • Kim Smith says

        March 30, 2020 at 8:48 am

        I will make sure this is spelt out in the next update of the notes.

  3. ika1973 says

    December 1, 2019 at 11:01 am

    Should the cold review not be considered in the answer for the question expressed in this way?

    Log in to Reply
    • Kim Smith says

      December 1, 2019 at 12:52 pm

      You have to quote the Q/specify # to make clear what is your query .

      Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in