What is Change in engagement?
In short
A client may ask an accountant to change an audit to a review or compilation, or a review to a compilation, before it is finished. The accountant considers whether there is a reasonable justification.
Key takeaways
- A change in the client's needs, or a misunderstanding about the service, is usually reasonable.
- A request that seems meant to avoid the effects of a scope limitation or of incorrect information isn't reasonable.
- If the change is made, the new report doesn't mention the original engagement.
Where it's tested
AUD: Reviews, Compilations & Agreed-Upon Procedures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which procedures form the primary basis of a review of financial statements under SSARS?