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Hi sir,
As we know if the client is new to the audit firm it will be high risk as no previous knowldge of the comp
1) What is the situation if the client is same to audit firm but new to the audit manager Is it considered high risk? And no previous knowledge /skills of it so should make more work ?
2) do we always assume that we are performing initial planning to audit/ auditing the client for the first time if it didnt state in q that
We are the auditors for company xyz for previous 3 years for example?
Plz explain howit will be stated in q
Thanks v much
If the question does not state that the blient is new by, for example saying ‘This is the first year of the audit’ then asdume it is not the first year. Most audits are repeats.
If only the manager changes then assume no additional risk. The client is well-documented eg previous year’s audit files and the partner is the same.
If the whole audit team changes (partner, manager, junior members), then there would be increased risk despite information in audit files. The audit firm should avoid that situation if possible.
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