TEST – 04 Instructions: Time Allowed: 1 hour (Including submitting time) Write down your full name & SKANS ID on test Make sure to make a PDF file of your test. Name of PDF file must be your own name Complete the test in given time & WhatsApp it to Sir Ali Imran. (0322-4288078) Total Marks = 20 Question #1 State the matters that should consider to establish whether the Pre-Conditions for the audit are present Marks = 05 Question #2 List any four situations that may require revision in the terms of audit engagement letter Marks = 04 Question #3 Your firm is the auditor of ABD Limited (ABDL). After the acquisition of majority shareholding in HG Motors (Private) Limited (HGM), ABDL has decided to replace the existing auditors of HGM and has approached you for appointment as HGM’s auditors for the next year. Explain the responsibilities of your firm and the existing auditors in the above situation under the Code of Ethics for Chartered Accountants. Marks = 06 Question #4 What points should a firm consider in connection with communicating with the current auditors? Marks = 05
