Chapter 4

Risk
Assessment
Performing Preliminary
Engagement ActivitieS
 Table of Contents
Topic 1 Topic 2
Pre-planning Client acceptance
phase of audit & continuance
Auditor’s activities, Auditors carefully
procedures, determine what
preconditions, engagements to
terms accept

Topic 3
Basis of audit
engagement
Happens when
engagement is
considered
acceptable
“In an audit, one of the critical
decisions auditor make- in
order to reduce audit risk and
auditor’s business risk- is
carefully selecting clients to
accept and agree the terms of
engagement with.”

—Someone Famous