1. Client :
Year ended :
CLIENT ACCEPTANCE PROCEDURES
DESCRIPTION YES/NO COMMENT
1 Is the firm independent of the prospective client?
2
Does the firm have following to serve the client?
I. Knowledge of the industry,
II. Required technical skills and
III. Adequate number of staff
3 Does the engagement present unusual risks?
4
Has the firm inquired from the predecessor auditor
regarding the following aspects?
I. Integrity of the management (any disagreement
with the management regarding accounting
policies, audit procedures and other matters)
II. Understanding as to the reasons for the change
in auditors
5
Has the firm received clearance from the predecessor
auditor to accept the assignment?
6
Were the inquiries made from other firm personnel or
third parties such as bankers, legal counsel and
industry peers?
7
Would the acceptance of the client violate code of
ethics?
I. Conflict of interest
II. Fees
III. Objectivity (having interest in, or relationships
with, a client or directors, officers or employees)
8
Has the firm obtained and reviewed available financial
statements, annual reports and interim financial
statements of the prospective client?
9
Is the business currently in start up phase (started
within past 5 years)?
10
Are the financial statements available in all of the 3
years?
Conclusion: I have considered the integrity of the management, the risks to the firm, the ability
of the firm to provide quality service and the professional, business and economic factors
regarding this engagement and recommend that the firm should/should not accept the client.
Partner: Name – ………………………….. Manager: Name - ……………………
Signature - ……………………… Signature - ………..….…..
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