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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Audit procedures- new client
Hello Mike
If the scenario mentions that the audit firm is starting work on a new client and the question asks for audit risks, would i be correct in saying that:
“The firm should obtain professional clearance from the previous auditor to find out the reason for the previous firm not being re appointed. There is a possibility that the previous auditor may have voluntary declined or resigned due to the lack of integrity of the client which in turn increases the risk of issuing an incorrect audit opinion.”
Regards
Yes, I suppose you could include that as an audit risk – it may be stretching a point but I don’t see it as wrong
And if it’s not wrong then it could well be seen by a marker as correct and relevant and earn you a mark
OK?