Client Screening (2)

Question 1

What happens where risk level of a company’s audit is determined as anything other than low?

Answer 1

Specific risks should be identified and documented

Question 2

What might be necessary?

Answer 2

To assign specialists in response to these risks, especially indiustry specialists, as independent reviewers

Question 3

What should expected fees from a new client reflect?

Answer 3

The level of risk expected

Question 4

What should firms also offer?

Answer 4

Some sort of return expected of clients of this nature and reflect the overall financial strategy of the audit firm

Question 5

What does an audit firm occasionally do?

Answer 5

An audit firm will want to accept a new client to gain entry into client’s particular industry, or establish better contacts within that industry

Question 6

What does audit firm generally want with a relationship with a client?

Answer 6

That relationship to be long term

Question 7

A relationship with a client is not only to enjoy receiving fees year after year?

Answer 7

Also allows the audit work to be enhanced by better knowledge of the client, thereby offering better service

Question 8

What must audit have?

Answer 8

The reosurces to work properly, as well as any specialist knowledge or skills

Question 9

How is the impact on existing engagements must be estimated?

Answer 9

In terms of staff time and the timing of the audit