Appointment As An Auditor

Question 1

What should the auditors consider before saying yes after having a successful tender

Answer 1

Are they professionally qualified to act

Is it legal and ethical firm to act (if the fees exceed the 15% limit for public interest companies)

Do they have adequate resources

Money laundering regulations requires auditors to “know their clients”

Communicate with the presents auditors

Consider politically exposed persons

Preconditions for the audit

Question 2

What is included in an engagement letter

Answer 2

Upon appointments auditors should send an engagement letter to the new clients

This includes:

Defined the auditors responsibilities

Provide written evidence of the auditors acceptance of the appointments

Should be sent to the board of directors or the audit committee prior to the first audit

Identify any reports to be produced in addition to all this report

Should be updated for all changes