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- 5 Marks
Question
M&G Chartered Accountants has been presented with two potential clients. They have written to the firm to appoint them as their external auditors.
Required:
State FIVE (5) factors you will take into consideration before making this client acceptance decision.
Answer
Factors to consider before accepting a client include:
- Statutory conditions: whether you are qualified under the provisions of the Company Act 2019 (Act 992) and not disqualified under any provision of the Act.
- Ethical requirements: the appointment should not conflict with the ethical requirements of independence and objectivity.
- Competence: the firm should have the necessary skills and knowledge to perform the audit engagement effectively.
- Resources: the firm should have adequate resources to complete the audit within the stipulated time.
- Reputational risks: assess whether accepting the client will bring reputational risks to the firm.
- Tags: Audit Engagement, Client Acceptance, Ethical considerations, ICAG Act
- Level: Level 2
- Topic: Professional and Ethical Considerations
- Series: MAR 2023
- Uploader: Theophilus