Obtaining an Engagement

Question 1

Two methods of obtaining and engagement?

Answer 1

Tender/bid/proposal and advertising

Question 2

Factors to consider when obtaining

Answer 2

Are we qualified to act, have we communicated with the previous auditors, do we have adequate resources, do we comply with the Money Laundering Reg’s 2007, have we assessed the level of management integrity and the level of risk?

Question 3

How do we obtain information on the client?

Answer 3

Client/external/previous auditor.

Question 4

For how long should client ID be kept?

Answer 4

Must be kept for a minimum of five years and until 5 years after the relationship has ceased.

Question 5

What needs to be checked after accepting?

Answer 5

Old auditor resignation, new auditor appointment, letter or engagement to company directors.

Question 6

What must be included in an engagement letter?

Answer 6

Management responsibilities, confirmation of the appointment, details of the scope and objective, form of reports, level of access, and reporting framework.