The engagement partner should be satisfied that appropriate procedures concerning client acceptance and continuance are followed (AICPA, 2016, p.123). The engagement should gather information on:
The competence of the engagement team to carry out the audit engagement and ensure that the team has all necessary resources and capabilities
Ensure the firm and the engagement team complies with the relevant ethical requirements (AICPA, 2016, p.127). The relevant ethical requirements include: integrity, public interest, objectivity and independence, due care and responsibilities (AICPA, 2016, p.126)
Take note of whether there have been any material events that have arisen during the current or the last audit engagement that would have implications on the current audit engagement (AICPA, 2016, p.127)
The auditor should include the audit documentation the following:
Issues identified in respect to compliance with ethical requirements (AIPCA, 2016, p.125)
Conclusions on the auditor’s independence and any discussions with the firm about the auditor independence (AIPCA, 2016, p.125)
The conclusions made about the acceptance and continuance of the audit engagement (AIPCA, 2016, p.125).
The nature and scope of, and any agreements resulting from the course of discussion undertaken during the audit engagement (AIPCA, 2016, p.125)
The engagement quality reviewer should also document the following:
That all the procedures required by the firm’s policies on engagement controls have been adhered to (AIPCA, 2016, p.125)
The fact that the reviewer is not aware of any unresolved matters that would render the conclusions reached by the engagement team invalid
Work Cited
AICPA, 2016. Online. Internet. 22 Feb. 2016. . Available:
http://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-C-.pdf.
