Question

Barbara Beck was a senior manager with Sloan and Sloan CPAs working on the Grant Music audit. On May 1, 2020, she left Sloan and Sloan CPAs and decided to take five months off to travel around the world. On November 1, 2020, she became the CFO at Grant Music. Sloan and Sloan made signficant changes to the audit plan for the upcoming year. Is this a violation of the PCAOB/SEC rules? 0 Yes No

Answer 1

The auditor should develop and document an audit plan that includes a description of:

a. The planned nature, timing, and extent of the risk assessment procedures;

b. The planned nature, timing, and extent of tests of controls and substantive procedures;and

c. Other planned audit procedures required to be performed so that the engagement complies with PCAOB standards.

The auditor should modify the overall audit strategy and the audit plan as necessary if circumstances change significantly during the course of the audit, including changes due to a revised assessment of the risks of material misstatement or the discovery of a previously unidentified risk of material misstatement.

So Solan's CPA should not change the audit plan due to the reason of travel around the world.