Preliminary Engagement Activities

Question 1

Engagement activities

Answer 1

Here’s a simplified version:

Involvement of Key Engagement Team Members
ISA 300 requires the engagement partner and key team members to be involved in planning the audit, including discussions to enhance efficiency and effectiveness.

Preliminary Engagement Activities
At the start of each audit engagement, the auditor must:

1. Continuance of Client Relationship: Perform procedures to ensure:
   
   • Competence to perform the engagement.
   • Compliance with ethical requirements.
   • Client integrity.
   • Consideration of significant matters from previous audits.
2. Evaluate Ethical Requirements: Assess compliance with relevant ethical requirements, including independence.
3. Establish Understanding of Engagement Terms: Confirm the terms of the engagement, as required by ISA 210.