Sir shouldnt the answer be C.Confidentality and appoint a new audit team because the previous audit manager is a friend of the new audit manager and a sort of a polite way to get him off the team is to appoint a new audit team.Kindly help me to understand the answer.Thank you
The current audit team has a new engagement partner (because the last on was rotated off the engagement) and a new manager (because the last one has left) and only the audit senior has audit experience in the industry. So the issue is professional competence – for which the safeguard is industry training.
(Regardless of the principle at risk “appoint a completely new audit team” would be a problem rather than a solution since it would remove the audit senior from the team.)