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    Devansh posted in the group CA Final Audit Discussion Group

    1 year, 4 months ago

    VKPL & Associates, a firm of Chartered Accountants, have been
    operating for the last 5 years having its office in Gurgaon. The firm has
    staff of around 25 persons with 3 Partners.
    The firm has been offering statutory audit, risk advisory and tax services
    to its various clients. The major work of the firm is for taxation services.
    The audit partners also discussed that the firm needs to work
    significantly to improve the quality of the services they offer and that
    would also help the firm to grown its business. Considering this
    objective, the firm started training programmes for the staff which were
    made mandatory to be attended.
    During one of the training programmes on quality, a topic was discussed
    regarding the information that should be obtained by the firm before
    accepting an engagement with a new client, when deciding whether to
    continue an existing engagement, and when considering acceptance of
    a new engagement with an existing client. It was explained that the
    following points may assist the engagement partner in determining
    whether the conclusions reached regarding the acceptance and
    continuance of client relationships and audit engagements are
    appropriate (as per SA 220):

    (i) The integrity of the principal owners, key management and those
    charged with governance of the entity;
    (ii) The qualification of all the employees of the entity;
    (iii) Whether the engagement team is competent to perform the audit
    engagement and has the necessary capabilities, including time
    and resources;
    (iv) The remuneration offered by the entity to its various consultants;
    (v) Whether the firm and the engagement team can comply with
    relevant ethical requirements; and
    (vi) Significant matters that have arisen during the current or
    previous audit engagement, and their implications for continuing
    the relationship.

    We would like to understand from you which of the above mentioned
    points are relevant for the topic under discussion?
    (a) i, ii, iv and v.
    (b) ii, iv, v and vi.
    (c) iii, iv, v and vi.
    (d) i, iii, v and vi.

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