Accepting Nomination as Auditor

Question 1

What is acceptance?

Answer 1

New auditors should ensure that they have been appointed in a proper and legal manner

Question 2

Acceptance procedure, ensure professionally qualified to act?

Answer 2

Consider whether disqualified on legal or ethical grounds

Question 3

Acceptance procedure, ensure existing resource adequate?

Answer 3

Consider available time, staff and technical expertise

Question 4

Acceptance procedure, obtain references?

Answer 4

Make independent enquiries if directors not personally known

Question 5

Acceptance procedure, communicate with present auditors?

Answer 5

Enquire whether there are reasons/circumstances behind the change which new auditor ought to know

Question 6

What should new auditors communicate?

Answer 6

With present auditors to determine whether there are any professional reasons as to why they should not accept appointment as auditors

Question 7

What happens if audit client refuses permission to correspond with new auditor?

Answer 7

Then new auditor should not accept appointment as auditor

Question 8

After accepting nomination, new auditor should (auditor’s)

Answer 8

Ensure outgoing auditor’s removal/resignation properly conducted in accordance with national regulations

Question 9

After accepting nomination, new auditor should (resolution)

Answer 9

Ensure new appointment properly conducted - obtain a copy of the resolution passed

Question 10

After accepting nomination, new auditor should (engagement)

Answer 10

Agree the terms of the engagement