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A change in entity's revenue recognition policy mid-year would prompt the auditor to:
ARe-evaluate RoMM for revenue, perform additional procedures around the change date, and ensure adequate disclosure under Ind AS 8
BIgnore the change
CConfirm only with one customer
DReduce sample size
Answer & Solution
Correct answer: A. Re-evaluate RoMM for revenue, perform additional procedures around the change date, and ensure adequate disclosure under Ind AS 8
1. Accounting policy change is a high-risk trigger for RoMM under SA 315 and Ind AS 8.
2. Auditor must address the change date and disclosure.
3. Reducing samples or ignoring is the opposite of the proper response.
_Source: ICAI BoS CA Final Paper 3, Ch 3 "Risk Assessment and Internal Control"_
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