- This topic has 3 replies, 2 voices, and was last updated 5 months ago by Kim Smith.
- May 6, 2020 at 10:42 am #570143toushiga
Sir ,for PYQ Sep / Dec 2017 Q3 part (b) “Actions”
The examiner answer for the last paragraph:
“Leopard & Co should communicate with the directors of Cheetah Co explaining that the firm is unable to be involved in the interim review or to review any of the working papers”
But the question stated that: “Your firm is due to complete the interim review shortly”
Is it contradict?
Thank you.May 6, 2020 at 12:57 pm #570155Kim SmithKeymaster
The Q paints a picture – the firm should be completing the interim review shortly – BUT is now under pressure. I think what it is saying is that it cannot complete the interim review/undertake any other review for the purpose of the bank meeting.June 29, 2020 at 1:11 pm #575176toushiga
I have a query about is it the review engagement will be same as current audit engagement or will be involved in another team as the answer refers to the interim review engagement partner?
Should it usually involve the same audit team to providing interim account review as its more effectiveness? or due to potential ethical threat, the review engagement should be allocated to another team in the firm?
Thank you.June 29, 2020 at 8:02 pm #575393Kim SmithKeymaster
The scenario points to the latter. The question of effectiveness is a short-term view – especially since interim reviews may be every 3 months the engagement partner for interim reviews should be as “up to speed” as the audit engagement partner quite quickly!
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