Acceptance- new engagements

Continuance- existing engagements

PSA-300

1.) COMPETENCE

-combination of education, training and experience

2.) INDEPENDENCE

-if you firm has shares in that specific company, your firm cannot audit it because there is no
independence.

3.) ABILITY TO SERVE THE CLIENT PROPERLY

-enough time and personnel

-evaluate the firm’s resources, manpower, and composition of the firm’s partners.

4.) INTEGRITY OF THE MANAGEMENT

-the successor auditor will make inquiries of appropriate parties in the business.

-communicate with the predecessor auditor to help you audit the “beginning balances” of the client.

5.) ADEQUACY OF THE ACCOUNTING RECORDS

-the supporting documents of the client must be adequate for us to properly audit.

ENGAGEMENT LETTER

Main Content- this will not change; required by the standard.

Additional content- can change