Week 2 - Ensuring Appointment is Valid

Question 1

What is the first condition to ensure appointment is valid and you are able to act?

Answer 1

• considering one’s own qualification to act
• objectivity/independence
• technical expertise/resources

Question 2

What is the second condition to ensure appointment is valid and you are able to act?

Answer 2

Considering how risky the new engagement is and ensuring due diligence

Question 3

What is the third condition to ensure appointment is valid and you are able to act?

Answer 3

Consider conflicts of interest and confidentiality issues e.g taking on competitors in same market

Question 4

What is the fourth condition to ensure appointment is valid and you are able to act?

Answer 4

Communicate with previous auditor (if not first auditor)