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Question 4: In exceptional circumstances, the auditor may judge it necessary to depart from a relevant
requirement in an ISA.
In the country Bepara, financial reporting authority's requirement regarding recognition of
agricultural assets is stricter than guided in IAS.
Under the circumstances, what will be the BEST action by the auditor of Xyl Ltd in Bepara?
A. The auditor shall perform complex audit procedures for Xyl Ltd to achieve the aim of the
requirement.
B. The auditor shall perform alternative audit procedures for Xyl Ltd to achieve the aim of the
requirement.
C. The auditor shall perform local audit procedures to achieve the aim of the requirement.
D. The auditor shall not perform any audit activity for agricultural asset of Xyl Ltd.
Correct Answer: B
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