1. Accepting a New
Appointment

2. Steps

3. Steps
1. Any professional problems attached to
accepting the engagement? (independence, a lack of expertise,
conflict of interest)

4. Steps
1. Any professional problems attached to
accepting the engagement? (independence, a lack of expertise,
conflict of interest)
2. Resources are available to complete the audit
(sufficient staff available at the right time)

5. Steps
1. Any professional problems attached to
accepting the engagement? (independence, a lack of expertise,
conflict of interest)
2. Resources are available to complete the audit
(sufficient staff available at the right time)
3. Get references (company and directors) = Client
screening

6. Steps
1. Any professional problems attached to
accepting the engagement? (independence, a lack of expertise,
conflict of interest)
2. Resources are available to complete the audit
(sufficient staff available at the right time)
3. Get references (company and directors) = Client
screening
4. Discuss with the ‘old’ auditors, the
appointment, the client and the audit work. The
method of communication should be a professional etiquette letter.

7. Client identification

8. Client identification
Anti money laundering (He is who he says he is)

9. Client identification
Anti money laundering (He is who he says he is)
Certificate of incorporation, headed letter paper,
recent utility bill

10. Client identification
Anti money laundering (He is who he says he is)
Certificate of incorporation, headed letter paper,
recent utility bill
Does the business make commercial sense

11. Communication
with old auditors

12. Communication
with old auditors
Get client permission (refuse if denied)

13. Communication
with old auditors
Get client permission (refuse if denied)
If no information provided, accept or reject the
engagement based on other available knowledge.

14. Communication
with old auditors
Get client permission (refuse if denied)
If no information provided, accept or reject the
engagement based on other available knowledge.

15. books & records

16. books & records
Old Auditor has Right of lien (if not paid)

17. books & records
Old Auditor has Right of lien (if not paid)
Documents in auditor’s possession lawfully

18. books & records
Old Auditor has Right of lien (if not paid)
Documents in auditor’s possession lawfully
Invoice sent and no dispute over fees.

19. books & records
Old Auditor has Right of lien (if not paid)
Documents in auditor’s possession lawfully
Invoice sent and no dispute over fees.

20. books & records
Old Auditor has Right of lien (if not paid)
Documents in auditor’s possession lawfully
Invoice sent and no dispute over fees.
Working papers belong to the auditor