Tuesday, May 25, 2010

What must an auditor consider before accepting a client?

Before accepting an client the accounting auditor should make sure the fee derived from this client is is not a significant amount of the total fees (some accounting bodies suggest 10% of the total fee derived for listed clients and 15% for an unlisted client).  

The auditor should also make sure there are no independence issues. Apart from that ,the auditor should contact the previous auditors to make sure there are no issues that need to be brought to their attention with regards to this particular client. 

The auditor should also make sure they have sufficient resources to perform the audit such as staff with appropriate skills for the particular industry

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