Home › CA Final › auditing › Audit Planning Strategy and Execution › For a continuing engagement, the auditor's consi…
For a continuing engagement, the auditor's consideration of previous year's working papers is:
AUseful input that informs current-year planning but does not replace fresh risk assessment
BA complete substitute for current-year planning
CRestricted by client confidentiality
DRequired only when management has changed
Answer & Solution
Correct answer: A. Useful input that informs current-year planning but does not replace fresh risk assessment
1. Prior workpapers inform current planning but do not replace it.
2. Risks change year-on-year; fresh assessment is mandatory.
3. Confidentiality binds the auditor but not internal access to prior papers.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
Related questions
Audit planning is BEST viewed as:When changes in audit strategy require re-evaluation of engagement risk, the partner shoulA first-year audit's opening balances are governed by:For an audit involving multiple components in different geographies, the engagement partneWhen the engagement team finds that a planned procedure cannot be performed (e.g. inventorUnder SA 300, the auditor's plan for tests of controls in the current year is influenced bThe engagement partner should determine that the engagement team has the appropriate compeA material weakness in the entity's controls over journal entries is identified at plannin