1.

Based on IAS 600, when can a group auditor divide responsibilities and refer to the
work of other professionals? 
Answer:
Based on ISA 600, group auditor can provide guidance with the so-called “related
auditor” which came from another firm. When the group auditor itself determines the scope
of work to be performed and communicates the plan with another auditor furthermore unless
the law or regulation permits, at the time the auditor decides to divide the responsibility. S/he
should take sole authority for the audit opinion on the group of financial statements.
However, in some situation or cases. ISA 600 doesn’t permit the group auditor to wholly
allocate responsibility for parts of the audit to another auditor.
2. When audits have been conducted by previous auditor, the successor auditor should
make inquiries to the predecessor auditor after the client has given the permission.
What kind of inquiries do you think should be asked by the successor auditor to the
predecessor auditor? What if the predecessor auditor refuses to give the current auditor
of a non-issuer access to the documents, what should the current auditor do? 
Answer:
It is very important to inquire predecessor auditor in order to provide relevant
information that will assist the successor auditor on whether to accept the engagement or not
so these are the matters that is subject to inquiries:
 Information that might bear on the integrity of management
 Dis-agreement this management as to accounting to principles or procedures
 Communication to those charge with fraud and illegal acts by clients
 Communication to management and those charge with deficiencies more over natural
weaknesses in internal control.
 Predecessor auditors understanding as to change of auditors
Overall, it must be specific and reasonable inquiries because it will improve the
successor’s auditor decisions. On the other side, if the predecessor auditor will make the final
decision. It will be available for review and which maybe copied such as working paper analysis
of balance sheet
accounts and contingencies.
 3.  What's the importance of engagement proposal to new client and continuing client?  
Answer:
It is very important to have engagement proposal to both new and continuing client to
have a natural understanding of the nature of the audit services to be performed, timing of
services, expected fees, audit team, audit approach, audit quality, use of client’s internal
auditors and transitions.
On the side of continuing, engagement proposal serves as a review for the auditing firm
and those responsible for the engagement of auditor to add value on the entity and plans for
further improvement from any changes in the audit team. While in new client engagement
proposal, it is beneficial to audit firm because new clients are the primary growth engine for
entities especially if it is a large or solid client that requires many hours to prepare in order to
adapt in the situation.

4. What is an audit engagement letter and why do you think it is beneficial for the auditor
and for the client? 
Answer:
Audit engagement letter is an agreement between accounting firm and the client for the
conduct of the audit and related services. It documents and confirm the acceptance of the
appointment, the objective and scope of the audit, the extent of the auditor responsibilities to the
clients and the form of any report further it also affects legal responsibility and limitations to the
client.
Conclusively, it helps avoiding in misunderstanding or collision between the auditor and
client with respect to the engagement.

5. What are the basic Information should an auditor consider prior to accept or reject a
client?
Answer:
Before making any decision, it is very important to evaluate potential clients according to
their financial statement, reputation and information provided by their previous auditors.
 In order to accept the client, the auditor is interested with the riskiness of his client and
the complexities that can be expected when the audit is performed so the components of
acceptance of the client are:
 Examination of the audit firm ethical requirements and technical competence.
 Possible use of other professional in the audit.
 Communication with the predecessor auditor.
 Preparation of client proposal.
 Assignment of staff.
 And submission of the terms of the engagement in form of an audit engagement
letter.
To summarize, it emphasizes the auditors and the audit team independents with their
specific competence which is required to deal with the unexpected issue in the future.