Chapter 2: Process of assurance engagement Flashcards
1
Q
What are the main factors to consider before accepting a client?
A
Legal
Ethical
Risk
Practical
2
Q
What are some other factors to consider when accepting a client?
A
1) Preconditions
2) Fees
3
Q
What should you regarding old auditor?
A
Contact them and ask for relevant information. If client does mot give permission to ask- red flag.
4
Q
How long should Client documents be kept?
A
Minimum of 5 years, or 5 years have elapsed since relationship has elapsed.
5
Q
What should be included in the audit engagement letter?
A
- Objectives of auditor/ Responsibilities
- Management responsibilities
- Scope of work
- Form of any reports
- Level of access to books and records
- Reporting frameworks
6
Q
When should audit engagement letter be issued?
A
Son after appointment and ideally before work begins.
