Request to change
An auditor who, before the completion of the engagement, is requested to change the engagement to one which provides a lower level of assurance, should consider the appropriateness of doing so.
A request from the client for the auditor to change the engagement may result froma change in circumstances affecting the need for the service, such as
(a) misunderstanding as to the nature of an audit or related service originally requested.
(b)a restriction on the scope of the engagement, whether imposed by management or caused by circumstances.
The auditor would consider carefully the reason given for the request, particularly the implications of a restriction on the scope of the engagement, especially any legal or contractual implications
If the auditor concludes that there is reasonable justification to change the engagement and if the audit work performed complied with the SAS applicable to the changed engagement, the report issued would be appropriate for the revised terms of engagement. In order to avoid confusion, the report would not include reference to:
(a)the original engagement; or
(b)any procedures that may have been performed in the original engagement.
The auditor should not agree to a change of engagement where there is no reasonable justification for doing so.
If the terms of the audit engagement are changed, the auditor and management shall agree on and record the new terms of the engagement in an engagement letter or other suitable form of written agreement.
If the auditor is unable to agree to a change of the terms of the audit engagement and is not permitted by management to continue the original audit engagement, the auditor shall:
(a)Withdraw from the audit engagement where possible under applicable law or regulation; and
(b)Determine whether there is any obligation, either contractual or otherwise, to report the circumstances to other parties, such as those charged with governance, owners or regulators.
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