Week 2 - To Consider Before Accepting an Audit Engagement

Question 1

What is the first thing to consider before accepting an audit engagement?

Answer 1

Consider own qualification to act - technical expertise, resources, objectivity/independence

Question 2

What is the second thing to consider before accepting an audit engagement?

Answer 2

Consider conflict of interest - if already have client in the same industry, should not take on new client unless you can clearly divide who deals with which client - no sharing of information

Question 3

What is the third thing to consider before accepting an audit engagement?

Answer 3

Consider communicating with previous auditor

Question 4

What is the fourth thing to consider before accepting an audit engagement?

Answer 4

Consider due diligence - could this backfire and damage our reputation?