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You’re an auditor an establishment and have considered the cost and benefit of obtaining a particular audit evidence and found out that the cost overwhelms the benefit as a matter of effect, there is no alternative and because of the sensitive nature of the term involved you can’t do without, what do you do?
Welcome to my AAA forum.
The only grounds for not obtaining evidence is that it is “impracticable”. If evidence/a procedure is necessary and cost is the only constraint, it must be the audit fee (as the client ultimately picks up all costs) that is the constraint. Such a limitation on the scope of the audit would warrant a modified opinion. In may many years as an auditor, I never came across such a situation that there was really no other source of evidence available.
In which ACCA question/answer are you seeing this as an issue?