Initial audit engagement
An initial audit engagement is one in which the prior period’s financial statements were not audited or were audited by a predecessor auditor. Acceptance, communication and obtaining evidence about opening balances require particular attention.
Worked example
A company appoints a new auditor after its previous auditor resigns.
Common mistake
Do not treat an initial engagement as identical to a recurring audit when opening-balance evidence is limited.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |