Appendix 3

Client Acceptance/Continuance Form

Contents Page 1 of 4

Client acceptance/continuance

This form is required to be completed before accepting a new audit client, and annually before commencing each audit of the client. In addition, the form should be addressed at any time when there is any doubt concerning the integrity of the client, the ability of the firm to perform the engagement or the ability of the firm to comply with ethical requirements.

Integrity
Yes No

Have the identities of the client s principal owners, key management, related parties and those charged with governance been identified? Is there any reason to doubt the integrity or reputation of the principal owners, key management, related parties or those charged with governance? If yes give details: Consider the nature of the client s operations and its business practices. Is there any reason to doubt the integrity of the business? If yes give details: Consider the attitude of the client s principal owners, key management and those charged with governance towards such matters as aggressive interpretation of accounting standards and the internal control environment. Does this give rise to concern regarding integrity or compliance with ethical standards? If yes give details: Is the client aggressively concerned with maintaining fees as low as possible? If yes give details: Is there any indication of inappropriate limitation in the scope of our work? If yes give details:

its owners or its managers? If yes give details: No Ability to perform the engagement Yes No Do the firm s personnel have the relevant industry knowledge. Do these cast doubt on the integrity of the client. or the ability to gain the necessary skills and knowledge effectively? If no give details: Are relevant experts available to provide services to the firm if and when needed? If no give details: . consider the reasons for the proposed appointment of the firm and non-reappointment of the previous firm (including any information obtained from the previous firm). and sufficient knowledge and experience of the type of engagement requested? If no give details: Do the firm s personnel have experience of the relevant regulatory and reporting requirements.Page 2 of 4 Yes Is there any indication that the client might be involved in money laundering or other criminal activity? If yes give details: For a new client.

Page 3 of 4 Yes Consider whether the audit will require a quality control review. are individuals meeting the criteria to be able to perform such a review available? If no give details: No Is the firm able to complete the engagement within the reporting deadline? If no give details: Ethical considerations Yes Will accepting or continuing the engagement give rise to any actual or perceived conflict of interest? If yes give details: No Is acceptance or continuance of the engagement likely to give rise to threats (or perceived threats) to any of the fundamental principles? If yes give details: Consider the professional and legal responsibilities of the firm in the light of any adverse responses to the questions above. including regulatory authorities? If yes give details: . Is there a requirement to report to third parties. If so.

(engagement partner) . . .) . because: . .. . Signed . .Page 4 of 4 Issues arising (Summarise here the issues affecting the firm s decision to accept or continue the engagement. a quality control review will/will not* be required. (compliance partner) Date . .. Conclusion It has been decided to accept/reject* this engagement/assignment*. . If this audit assignment is accepted/continued*. .

* Delete as applicable .

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