英语论文网

Medhat Endrawes
Room: E4A 354
Consultation: Thursday 10-12am
Phone: 9850 8451
Email: mendrawe@efs.mq.edu.au
By the end of this lecture you should be able to:
Explain the significance of the client acceptance/retention decision
Describe the content and purpose of the  engagement letter
Describe the process and issues in preparing an audit plan
Describe considerations in assigning staff
Identify and discuss aspects of the business that are considered by the auditor
Discuss the concept of business risk and how it impacts on the audit
Describe and perform analytical processes at the planning stage

The audit firm shall establish quality control procedures and policies for accepting/continuing with a client. (APES 320; ASA 220)
Who is responsible?
The engagement partner (ASA 320.8)
the partner or other person in the firm who is responsible for the audit engagement and its performance, and for the auditor’s report that is issued on behalf of the firm, and who, where required, has the appropriate authority from a professional, legal or regulatory body.   
When accepting new clients
Acceptance decision will involve a use of tools like computerised decision aids, checklists and can lead to memorandum explaining acceptance and consultation with a second partner

ASA 320
Acceptance and continuance of client relationships and specific audit engagements include considering:
• The integrity of the principal owners, key management and those charged with governance of the entity.
• Whether the engagement team is competent to perform the audit engagement and has the necessary time and resources.
• Whether the firm and the engagement team can comply with ethical requirements.
20 Where issues arise out of any of these considerations, under paragraph 34 of this Auditing Standard, the engagement team needs to conduct appropriate consultations and document how issues were resolved. Also refer to explanatory guidance set out in paragraphs 35 to 37 of this Auditing Standard.
21 Deciding whether to continue a client relationship ordinarily includes consideration of significant matters that have arisen during the current or previous audit engagements, and their implications for continuing the relationship. For example, a client may have started to expand its business operations into an area where the firm does not possess the necessary knowledge or expertise.

APES 320.29; ASA 320.19
The identity and business reputation of the client’s principal owners, key management, related parties and those charged with its governance.
The nature of the client’s operations, including its business practices.
Information concerning the attitude of the client’s principal owners, key management and those charged with its governance towards such matters as aggressive interpretation of accounting standards and the internal control environment.
Whether the client is aggressively concerned with maintaining the Firm’s fees as low as possible.
Indications of an inappropriate limitation in the scope of work.
Indications that the client might be involved in money laundering or other criminal activities.
The reasons for the proposed appointment of the Firm and non-reappointment of the previous Firm.

Obtain and review available financial information –annual reports, prospective reports, tax returns
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