Audit & Assurance: Client Acceptance

Question 1

CAS 220: Info to be considered when determining whether to accept/continue with prospective client

Answer 1

.INTEGRITY of principle owners, key mgmt, those charged with governance
.COMPETENCE and CAPABILITY of engagement team
.ETHICAL requirements
.significant matters that have arisen during current/previous audit engagement

Question 2

CAS 220: Factors to consider in assessing client integrity

Answer 2

.REPUTATION
.Attitude & management of RISK
.COOPERATION of client & provision of information
.Client’s attitude to AUDIT FEE
.Why does the client want to switch from their previous firm?