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Accepting the engagement and the engagement letter

AUD Chapter 5 · Area I · Blueprint I.D

Before any testing starts, the auditor decides whether to take the client at all and puts the deal in writing. Questions here are mostly recall: what must be in place, what to ask the previous auditor, and when a client may step down from an audit to a review.

In this chapter

1. Accept or continue? Three questions for the firm
2. Preconditions for an audit
3. Talking to the predecessor auditor
4. Opening balances in a first-year audit
5. Changing the engagement: from audit to review
6. The engagement letter
7. Who signs, and what happens next year
8. The acceptance timeline

This chapter has 8 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Preconditions for an audit
• acceptance and continuance
• talking to the predecessor auditor
• changing the type of engagement
• the engagement letter

Chapter 4: Types of engagements: nature, scope and objectives · Chapter 6: Engagement documentation