a. Factors to be Considered Before Accepting an Audit Engagement:

• Client’s Reputation: Assess the integrity of the client’s management, history, and business practices to ensure alignment with professional standards.
• Threats to Compliance: Review if the engagement might pose any compliance threat with fundamental principles such as integrity or professional behavior.
• Competency: Verify that the firm possesses the necessary skills and resources for the engagement to ensure quality and compliance.
• Engagement Terms: Ensure a clear agreement on engagement scope and terms, especially regarding fees and service requirements.

b. Stages in an Audit of a Company:

• Planning: Involves preparing an audit plan, establishing audit objectives, and setting the scope of work, with details on staffing, timing, and audit procedures.
• Internal Control Review: Assessment of the entity’s internal control systems to determine reliance levels and evaluate risk.
• Testing: Conducting substantive procedures or tests on financial records, depending on the reliability of internal controls.
• Reporting: Finalizing the audit opinion and documenting findings in the audit report, which could be unmodified or modified based on audit outcomes.

c. Roles of ICAN and FGN in Regulating External Audit:

• ICAN: Responsible for professional self-regulation, ICAN oversees certification and competence levels through education and examinations, ensuring only qualified individuals perform audits. ICAN establishes ethical and technical standards, maintains professional competence, and conducts compliance monitoring.
• FGN: Government regulations provide statutory frameworks and may establish public bodies responsible for licensing auditors and setting rules for audits. FGN also ensures public interest protection and may enforce restrictions on audit practices in public interest entities, managing complaints and disciplinary actions where necessary.