i. Client Acceptance:
Before accepting a client, an auditor must consider several ethical factors, primarily independence and integrity. The auditor must evaluate if they have any relationships or interests that could impair their independence, both in fact and appearance. If the client has a poor reputation for honesty or has been involved in illegal activities, the auditor should consider rejecting the engagement. Other factors include whether the auditor has the competence and resources to serve the client effectively without compromising audit quality.

ii. Engagement Acceptance:
When deciding whether to accept an engagement, the auditor should assess whether the scope of the engagement aligns with their professional expertise and whether it can be completed within the available timeframe and resources. The auditor should also consider whether the engagement poses any risk to their independence or creates conflicts of interest. Additionally, the auditor must ensure that the client will allow access to sufficient information and records to conduct a thorough and compliant audit, ensuring the engagement can meet professional and legal standards.