Client acceptance and continuance procedures

In this lesson

1. 0:00 Client acceptance and continuance overview
2. 0:20 Pre-engagement checks and qualifications
3. 0:49 Seeking clearance from previous auditors
4. 2:20 Understanding audit responsibilities and conditions
5. 3:06 Preconditions for audit engagement

About this lesson

We'll walk through the key checks you must complete before accepting an engagement: knowing your client through money laundering verification, confirming your professional qualifications and expertise, identifying any ethical threats, and seeking clearance from previous auditors. You'll discover why client permission is vital when contacting prior auditors, and what it means if a client refuses to grant it. We'll also cover the preconditions for a successful audit engagement. There must be a clear, written understanding between you and management about responsibilities—what the auditor will do and what management must do. This includes confirming that the financial reporting framework (such as IFRS) is appropriate for the business, and securing written acknowledgement from the directors that they're responsible for preparing the financial statements, maintaining internal controls, and providing you with complete access to all books and records. Without this common understanding in place, the audit simply cannot proceed. This knowledge is essential for the Audit and Assurance module and reflects real-world professional practice.

Duration: 4m