15. AK & Co, a firm of Chartered Accountants, have been operating for the last 6 years. Due to the quality of service offered by the firm, it has made its name and is quite renowned especially in Southern India where its head office is located. The firm has a staff size of 240 including graduates, Chartered Accountants, Management Consultants, Company Secretaries and lawyers.

The firm has 3 branches other than head office at Bangalore, Chennai and Pune. The firm has got many clients for statutory audit over the period and ensures that to maintain the quality of work, proper planning is done by each team before starting any engagement.

One of the engagement team, picked up for statutory audit of Sun Private Ltd, was involved in the process of planning of audit for the financial year ended 31 March, 2020. The audit for the financial year ended 31 March, 2019 was conducted by a different engagement team. However, the engagement team of Sun Private Ltd for the current year has got the industry experience. The audit team is confused during the planning work and would like to have your views on following points. Please advise by answering one of them.

(a) The engagement team should consult the previous year's engagement team during the course of their planning.

(b) The engagement team should be independent and hence, cannot consult the previous year's engagement team during the course of their planning.

(c) The engagement team needs to maintain confidentiality and hence, cannot consult the previous year's engagement team during the course of their planning

(d) Only the Partner who is going to sign the audit report may consult the previous year's audit team.






















Ans: (a) The engagement team should consult the previous year's engagement team during the course of their planning.

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