16. Kshitij Private Ltd is a company based out of Kochi having operations primarily in Europe. Because of the nature of the operations of the company,it is required to prepare its financial statements as per International Standards for reporting to the local regulatory authorities over there.

Since the business is based in Europe, the audit team is also required to visit the locations wherever the company has offices and is accordingly, required to perform certain audit procedures over there.

During the audit of this company for the financial year ended 31 March, 2020, the auditors, who had planned their work appropriately and had a large team for conducting the audit, were facing lot of challenges at various stages.

They were also required to revisit their materiality level during the Course of the work. However, at the time of final reviews when this was discussed with the Audit Partner (Audit Incharge), he was not convinced with the approach of the audit team wherein they reassessed their plans continuously resulting in waste of time. In this situation, please advise which one of the following would be correct.

(a) Audit Partner being the senior most team member is right and same thing should be considered by audit team by documenting it in the audit file.

(b) Audit Partner's view is not correct as the audit team did the right thing.

(c) Audit Partner was correct, however, during the course of an audit which required visits at various locations it was mandatory.

(d) Audit Partner's view is not correct because the materiality was revised by the audit team which is a big thing and same should have been considered by the audit partner.























Ans : (b) Audit Partner's view is not correct as the audit team did the right thing.



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