MCQ of the day ! One of your audit client Vernon Co with a year ending 31 March 2019 is planning to

MCQ of the day !

One of your audit client Vernon Co with a year ending 31 March 2019 is planning to prepare the
financial statements from the next year as per Indian Accounting Standards (Ind AS). The finance
director of Vernon Co has contacted the audit engagement partner, asking if your firm can provide
training on Ind AS to the accounts department of the entity. This will help them to understand all
the provisions of Ind AS and the transition process will be easier.
Which of the following options needs to be considered by the audit engagement partner?

a)The issue is whether there is a self-interest threat, as the auditor will receive separate training
fees for the service provided. The audit partner should decline the training assignment.

b)The issue is whether the audit firm would be likely to possess the requisite competence to
provide such training to the staff of the entity. The audit partner should decline not all the
qualified people are good trainers.


c)The audit partner could go ahead with the training service and disclose the fact in its audit
report about the service provided during the period. This will safeguard and reduce the threat
to an acceptable level.


d) The audit partner needs to assess the materiality of the figure, and the degree of subjectivity
involved. If it considers that safeguards like using separate personnel, could reduce the threat
to an acceptable level, then it can go ahead with both the audit and the training assignment.