Question

Which of the following would be a violation of the due care principle on an audit assignment?

		In auditing a small bank, the partner on the engagement plans for 3 staff, 1 senior, 1 manager and 1 partner. Due to fee constraints, during the engagement the partner pulls the senior and manager and directly reviews the audit workpapers.
		In auditing a small bank, the partner on the engagement plans for 3 staff, 1 senior, 1 manager and 1 partner. Due to illness for the manager, during the engagement the partner pulls the manager and directly reviews the audit workpapers.
		In auditing a small bank, the partner on the engagement plans for 3 staff, 1 senior, 1 manager and 1 partner. Due to illness for the senior, during the engagement the manager does the senior's work and the partner directly reviews the audit workpapers.
		None of the above.

Answer 1

The answer is None of the Above.

Due Care means the Reasonable care about the accuracy and authenticity is taken by the auditor while discharging the attestation function. In simple terms, the degree of care expected from a reasonable person in given situation is called Due Care.

In all the above scenario the Partner has taken due care to review the work himself and hence not violated the Due Care principle.

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