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matters to consider prior to accepting an audit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › matters to consider prior to accepting an audit

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarKim Smith.
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  • November 2, 2020 at 5:22 pm #593875
    Avatarantsam31
    Member
    • Topics: 34
    • Replies: 7
    • ☆

    Dear Kim,

    I am going through a question re the matters which should be considered prior to accepting an audit. would the following point be considered relevant for such an answer;
    1. conduct CDD
    2. verify whether the entity change auditors frequently and whether it has any qualified reports
    3. management should provide access to all the entity documentation
    4. management responsibilities should be clearly explained

    thank you

    Ant

    November 3, 2020 at 7:02 am #593899
    AvatarKim Smith
    Keymaster
    • Topics: 138
    • Replies: 8463
    • ☆☆☆☆☆

    You could make an “ideas” list from the notes on page 20 – which obviously you would have to tailor to any specific scenario:
    – ethical (in particular independence) requirements
    – practical e.g. resources
    – regulatory e.g. AML (includes CDD/KYC)
    – professional e.g. communication with present auditor
    – preconditions for the audit (covers your last 2 points)

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