Engagement acceptance and continuance
Acceptance and continuance procedures assess whether a firm can perform an engagement competently, with sufficient resources, ethical compliance and appropriate client integrity. The firm reconsiders continuance when new information changes its assessment. The firm considers its ability to comply with independence requirements, the competence and time available, and information about the client’s integrity. A decision may require further safeguards, specialist resources or declining the engagement, and is revisited if circumstances change.
Worked example
A prospective client restricts access to essential records; the firm evaluates whether audit preconditions exist and whether acceptance is appropriate.
Common mistake
Commercial attractiveness alone is not sufficient; do not accept when independence requirements or audit preconditions cannot be met.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |