Assurance Engagement for a new client

It's not part of KYC due diligence but a professional requirement - see page 21 of the notes. Sometime called "professional clearance" or "professional etiquette" this is covered in the "changes in a professional appointment" section of Section 210 (Professional appointment) of the ACCA Code of Ethics and Conduct: "The proposed accountant shall write to the existing or predecessor accountant (i.e. auditor) requesting all the information which ought to be made available to enable the proposed accountant to decide whether or not to accept the appointment."

Thank you that makes sense. Which leads to another question.. if the auditor does not respond, after the usual appropriate chasing, as a proposed accountant we can then decide whether to proceed or not, weighing up the risk?

As a matter of professional courtesy the existing accountant should reply - section 210 provides as follows: "210.13A If the existing accountant continues to fail to reply, or fails to supply satisfactory replies, the proposed accountant shall generally send a further letter by a recorded delivery service. The letter shall state that unless a reply is received within a stated period, say seven days, the proposed accountant will assume there are no matters of which he/she should be aware and, at the end of the stated period, will proceed to accept the appointment." So the existing accountant cannot prevent a proposed accountant from taking over the client by not replying.

Great, thank you,

You're welcome!