Page 5 - PowerPoint Presentation
P. 5
AN OVERVIEW OF THE AUDIT PROCESS
Preliminary Stage
• Procedures that take place before an audit engagement
is accepted.
• Includes the following;
• Procedures to determine whether or not the audit
engagement should be accepted (whether or not to
continue with client, in case of an existing client)
• Whether the client can be appropriately serviced
• Whether the firm will be able to comply with ethical
requirements (e.g independence issues…)
• Establishing the terms of engagement (usually takes the
form of an Engagement Letter)
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