Explain why the decision to accept a client is important and describe the primary features of client acceptance and continuance, including the purpose and content of an audit engagement letter.
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Explain why the decision to accept a client is important and describe the primary features of client acceptance and continuance, including the purpose and content of an audit engagement letter.
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- What is Audit Client Acceptance Procedures?Assume your firm has decided to move forward. Referring to your evaluation of internal and external factors. explain why it would be appropriate for the external audit team to accept the client audit request. using examples to support your responseWhen establishing an understanding with an audit client, that understanding should be documented Group of answer choices: a. Through a management representation letter. b. In a manner completely based on the auditor’s seasoned professional judgment. c. Either orally or in writing with the client. d. Through use of an engagement letter.
- To which customer is the auditor least likely to send a receivables confirmation? O customer whose account is overdue O customer who owes a significant amount of money at year end O customer who is also a related company to the entity under audit O customer who owes very little at year endDefine what is meant by an audit trail and explain how it can beaffected by the client’s integration of IT.Answer the below: What do you understand by attestation services? Discuss the responsibility and functions of CPA. Why independent Auditors' Reports are usually required? What type of information usually discussed in this report?
- Auditors are required on every engagement to obtain a representation letter from the client. a. What are the objectives of the client’s representation letter? b. Who should prepare and sign the client’s representation letter? c. When should the client’s representation letter be obtained?The final stage in the client acceptance and continuance decision process involves: a. the auditor obtaining a management representation letter from the client. b. the auditor preparing an independence declaration statement. c. the client's audit committee meeting with the auditor. d. the preparation of an engagement letter.Choose the preliminary engagement activity of an auditor. O a. Establishing an understanding of the term overall audit strategy O b. Assist the management in identifying and evaluating events O c Establishing an understanding of the terms of the engagement O d. Establishing an understanding of the term of audit planning
- Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…Auditors gather information through communication with individuals internal and external to the prospective client. Which of the following would be internal to the client? O Communication with the previous auditor O Communication with third parties O Communication with client personnel O Communication with the client's industry peersThe use of an audit engagement letter is the best method of assuring the auditor will have which of the following?Select one: a. Cooperation from other auditors b. Auditor will obtain sufficient appropriate audit evidence. c. Access to all books, accounts and vouchers required for audit purpose d. Management representation letter
