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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?
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).
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
March 13, 2020 at 11:34 am
By definition an EQCR must be before auditor’s report is signed – i.e. “hot”.
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.
March 30, 2020 at 8:48 am
I will make sure this is spelt out in the next update of the notes.
December 1, 2019 at 11:01 am
Should the cold review not be considered in the answer for the question expressed in this way?
December 1, 2019 at 12:52 pm
You have to quote the Q/specify # to make clear what is your query .
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