- This topic has 2 replies, 2 voices, and was last updated 9 years ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Help with preconditions for audit.
Hey Sir,
Good morning,
– I wish you clarify me on this issues. when we talk of preconditions for accepting an audit, are we talking of accepting a new audit client?
– what steps should an audit firm take to confirm whether the preconditions of an audit are in place.
will highly appreciate your timely feedback sir.
Gold
No, this is separate from general acceptance of a new audit client (ethics etc). However,
ISA 210 states:
In order to establish whether the preconditions for an audit are present, the auditor shall:
(a) Determine whether the financial reporting framework to be applied in
the preparation of the financial statements is acceptable; and
(b) Obtain the agreement of management that it acknowledges and
understands its responsibility:
(i) For the preparation of the financial statements in accordance
with the applicable financial reporting framework, including
where relevant their fair presentation; (Ref: Para. A15)
(ii) For such internal control as management determines is necessary
to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error; and
(iii) To provide the auditor with:
a. Access to all information of which management is aware
that is relevant to the preparation of the financial statements
such as records, documentation and other matters;
b. Additional information that the auditor may request from
management for the purpose of the audit; and
c. Unrestricted access to persons within the entity from whom
the auditor determines it necessary to obtain audit evidence.
Generally, this will be covered in the engagement letter.
thanks very sir for the clarification
