An auditor engaged to examine the financial statements of a non-public entity is asked by the client to refrain from performing certain audit procedures and to change the engagement to a review. What is the auditor's most likely response?

• A. Grant the client request.
• B. Qualify the auditor's report and refer to the scope limitation.
• C. Complete the examination in progress.
• D. View the request as an indication of possible irregularity.

Answer: (A)

The question tests how to handle a client’s request to change the engagement and scope. When management asks to refrain from certain audit procedures and to switch to a less extensive form of engagement, the auditor may consider agreeing to change the engagement, provided both parties consent and the terms are clearly defined in a new engagement letter. Switching to a review represents a different level of assurance with its own procedures, so agreeing to the change is a legitimate way to meet the client’s needs while still adhering to professional standards.

This is the best choice because it recognizes that a change of engagement is permissible and often appropriate when management requests a different scope of work. It avoids implying the auditor must issue a restricted-audit report or continue the original audit with a scope limitation, and it avoids treating the situation as an automatic indication of irregularity. If the auditor cannot or will not accept the change, the alternative would typically involve terminating the current engagement, rather than forcing a partial or incomplete audit.