CPA · Question 06 · Area I: Ethics & General Principles
During the planning phase of an audit of a nonissuer, the auditor is establishing an understanding with the client regarding the services to be performed. The client requests that the engagement be changed from an audit to a review due to a misunderstanding of the cost involved. Under AU-C 210, which of the following is the auditor's BEST course of action?
Answer options:
Refuse the request because the engagement letter for the audit has already been signed.
Agree to the change automatically since the client determines the scope of services.
Evaluate whether there is reasonable justification for the change and, if so, agree to the change and issue a review report.
Agree to the change but include a reference to the original audit engagement in the review report.
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