Auditing a foreign sub

Hi Mike,

Just wondering would all the below points score separate marks or would I have to group them together.

The question is simply explain the matters that should be considered before accepting the engagement to audit a new form in a foreign country? (5 marks)

Cost
We should consider the extra costs we will incur to travel to this new client in this foreign country. We will have flights, hotels, etc. this increases costs.

Resources
We should consider the amount of resources we will need for the audit as this is in a foreign country and a new client we may need to bring a bigger auditing team with us depending on the size and complexity of the audit. This will of course increase costs. We should also see if we have an audit firm in this country and see if they will perform the audit there given to decrease travel costs.

Audit Fee
We will need to consider the audit fee to ensure the above costs are being captured and that the fee is accurate and market rate for an audit of this complexity.

Accouting Policy and controls
We will need to consider the accounting policies adapted by the new client and see what controls we will have to perform on the new client given we have no knowledge of their business or current controls.

Exiting Auditor
We should read the previous auditor report and contact the outgoing auditor to discuss his auditor work with him and ask them any questions we have about the client.

thanks