However, regardless of size, audit firms may choose to specialize themselves in the

audit of clients in a particular market or sector, for example, a smaller firm may
specialize in the audit of clients in the farming sector or not-for- profit
organizations, so it should not be assumed that just because an audit firm is
small, it would not meet the competence requirement.
When accepting an audit engagement involving a specialist industry, the audit
firm needs to pay close attention to the competence of the audit firm to provide
the service. Smaller firms may have to carefully consider their competence to take
on an audit client in a specialized industry if they have not previously worked
with an audit client in the same industry. This should include consideration of
whether the audit firm personnel has knowledge of relevant industries and has
experience with relevant regulatory or reporting requirements or the ability to
effectively gain the necessary skills and knowledge.