What should an auditor do first before starting an engagement? What does this include?

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Expert Solution

The auditor has the right to accept or reject the engagement.Before accepting or rejecting the engagement,the auditor will evaluate the engagement.After the evaluation.Assuming independence and requisite technical abilities,the pre-acceptance evaluation of a prospective audit management normally focuses on three factors.They are:

1.personal integrity of the prospective client's management and principals

2.presence of circumstances poiting towards unusual risks in the engagement and

3 Communication with the previous auditor

Before the audit begins,the auditor performs the pre-engagement acceptance or continues procedures.Once the pre-engagement assesment is complete ,the auditor issues an Engagement Letter with:

a.engagement objectives,scope and limitations

b.management's responsibilities

c.responsibility for adjustments

d.the auditor's reponsibilities and

e.other matters,such as fees.

These are the duties an auditor do first before starting an engagement.

ekkarill92 answered 1 year ago

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