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The engagement partner should determine that the engagement team has the appropriate competence to perform the audit, considering:
AKnowledge of relevant industry, expertise in IT environment, regulatory understanding, and complex accounting
BOnly their CA qualification
CThe size of the office only
DLast year's fees
Answer & Solution
Correct answer: B. Only their CA qualification
1. SA 220.14 enumerates competence factors: industry, IT, regulatory, complex accounting.
2. CA qualification is necessary but not sufficient.
3. Office size and fees do not determine competence.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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