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When fees remain overdue for a significant amount of time, the firm should consider whether the overdue fees constitute a loan, and whether it is appropriate to seek reappointment or continue with the engagement.
maam what is reappointment in this context? from what I understand, how is reappointment by the same company going to address the problem of overdue fees?
In general, for any threat that cannot be reduced to an acceptable level by safeguards, the auditor should (after consideration) discontinue the engagement/not seek reappointment.
It is deciding to NOT seek reappointment/continue with the engagement that overcomes the problem (= “Decline or end the specific professional activity” – see last bullet above 3.1 on page 22 of the notes).
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