2. process of assurance Flashcards
how do assurance firms get clients
- advertise for clients
- tender - bid for work
what are 3 reasons why an auditor wouldnt accept an engagement
LETTERS
ELP
ELP
what are 3 reasons why an auditor wouldnt accept an engagement
Ethical
Legal
Practical
when would auditors decline the engagment
if client doesnt give permission for new auditors to contact old
what do auditors do after they have accepted
- send engagement letter - minimise expectation gap to directors
- AML checks
- ensure old auditors removal was properly conducted
- new appointment is valid
what is client due diligence
be alert about money laundering clients
when is it mandatory for them to check identity of client
- ongoing relationship
- one off transaction > 15000 euros
what are the identity checks for individuals
passport
address
full name
photo
utility bill
what are the identity checks for individuals
certificate of incorporation
registered address
confirmation statement
previous FS
how many years do you have to keep identification checks of client for
5 years from when relationship is ended
what things must be in our engagement letter
LETTERS
M
A
C
A
R
O
N
S
what things MUST be in our engagement letter
MACARONS
- agreeing the terms of the audit
M - management responsibility
A - auditors responsibility
C - confirming reports
A - auditors opinion
R - reporting framework
O - objective
N - no access restrictions
S - scope of audit - what i will do
