Hi,
If an auditor leaves a condition in the engagement letter that if he finds errors he will want to renegotiate his fee to cover the additional work/time involved and the client is then not agreeable to the additional fees, should the auditor cease the audit work at that point or complete audit simply giving a disclaimer of opinion.
Thank you for your time.
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Audit Risk & Fee
10y ago#1In most cases the sensible way to rpoceed would be to warn the client of an impending qualification or disclaimer. If the client refused to pay more then a qualification or disclaimer would be appropriate if the issue was material.
A resugnation does little good for the shareholders to whom the auditor reports. Better that they get some audit information than none.
I wouldn't think that the auditor will stay for the following year's audit however.
cheers
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