Page 76 - AAA Integrated Workbook STUDENT S18-J19

Chapter 6 4

2.3 Information required for the proposal

 The fee and how it has been calculated

 The nature, purpose and legal requirements of an audit

 An assessment of the requirements of the client

 An outline of how the audit firm proposes to satisfy those requirements and the
assumptions made, e.g. on geographical coverage, deadlines, work done by
client, availability of information, etc.

 The proposed approach to the audit or audit methodology

 An outline of the firm and its personnel

 Quality control procedures of the firm including those relevant to the
engagement

 The ability of the firm to offer other services

2.4 Selection process of the proposal

A survey of audit committees found that the selection process for tenders focused on:

 Independence.

 Judgment and scepticism of key audit partners.

 Evidence of internal and external quality reviews.

Price was not the deciding factor.

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