In making a decision whether to accept or reject an engagement, an auditor should consider competence, independence, integrity of the prospective client's management and its ability to serve the client properly. Furthermore, the auditor is expected to perform the following (choose all the items that apply to the previous statement): * Obtain a preliminary knowledge of the client's business and industry to determine whether the client management has the degree of competence required by the engagement. Consider whether there are any threats to the firm's independence and objectivity, and if so, whether adequate safeguards can be established. Evaluate auditability. Investigation of the integrity of the client's management through inquiry to appropriate parties or communication with the successor auditor. Agree on the terms of the engagement and prepare a management representation letter. Evaluation of the firm's ability to serve the prospective client
In making a decision whether to accept or reject an engagement, an auditor should consider competence, independence, integrity of the prospective client's management and its ability to serve the client properly. Furthermore, the auditor is expected to perform the following (choose all the items that apply to the previous statement): *
Obtain a preliminary knowledge of the client's business and industry to determine whether the client management has the degree of competence required by the engagement.
Consider whether there are any threats to the firm's independence and objectivity, and if so, whether adequate safeguards can be established.
Evaluate auditability.
Investigation of the integrity of the client's management through inquiry to appropriate parties or communication with the successor auditor.
Agree on the terms of the engagement and prepare a management representation letter.
Evaluation of the firm's ability to serve the prospective client.
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