Which of the following is a justifiable reason for omitting advance client notice when planning an audit engagement?

Question

Options

• AAdvance notice may result in management making corrections to reduce the number of potential
• BPrevious management action plans addressing prior internal audit recommendations remain
• CThe engagement includes audit assurance procedures such as sensitive or restricted asset
• DThe audit engagement has already been communicated and approved through the annual audit

• A
  11% (5)
• B
  2% (1)
• C
  80% (36)
• D
  7% (3)

Explanation

Omitting advance client notice when planning an audit engagement is justifiable if the engagement includes audit assurance procedures that involve sensitive or restricted assets. Providing advance notice in such cases could compromise the integrity of the audit, as it may give management an opportunity to conceal or alter the status of these assets. The goal is to ensure that the auditors can observe the actual condition and handling of sensitive assets without any prior alteration.

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