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sir,
-does client assessment same thing as client acceptance procedures? ,-what does professional clearance means?
-and, why engagement letter is addressed to directors rather than shareholders (as shareholders appoint auditors to work on their behalf)
Client assessment is the same as client acceptance. You are assessing whether you want them a a client.
Professional clearance is is not asking for permission to take over the predecessor’s client. The purpose of writing to the outgoing auditor is to find out if there is any reason why you should not take on the client.
The shareholders have to appoint the auditor, but the contract is with the company and the audit fee is paid by the company. Like any other important contract, the engagement letter would be sent to the board for their agreement.
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