Chapter 3 - Professional Appointments

Question 0

What is the procedure for taking a new client?

Answer 0

Member asked to be auditor - request client permission to communicate with existing auditor - request in writing all information necessary to decide whether or not to accept nomination - existing auditor then gets client permission to speak to prospective auditor - existing auditor should then communicate to prospective auditor all information required to assist

Question 1

Before accepting new client or continuing existing client what must be considered

Answer 1

Whether preconditions for audit exist i.e. acceptable financial reporting framework, management understand responsibilities

There should be no limitations imposed by client on scope of auditors work

Whether accepting would create any threats to fundamental principles

Whether the firm has competence to perform engagement