- 5 Marks
Question
You have been nominated as an Auditor to replace a professional colleague who is retiring from an engagement after having served the mandatory period of six years as required by statute.
Required:
Describe FIVE (5) procedures you should follow to fulfill the legal and professional requirements for the acceptance of the engagement.
Answer
Procedures for accepting an audit engagement:
- Obtain permission from the client to contact the outgoing auditor to gather information about the reasons for the change.
- Contact the outgoing auditor to inquire about any issues or reasons that could prevent the acceptance of the appointment.
- Ensure the legal requirements concerning the removal of the previous auditor and the new appointment are met.
- Verify that the audit firm has the necessary resources, independence, and competence to handle the audit engagement.
- Assess the integrity of the client and management before accepting the engagement.
- Topic: Professional and Ethical Considerations
- Series: DEC 2022
- Uploader: Theophilus