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Chapter 63 4

Information for the tender

2.1 Matters to consider when invited to tender

 Wasted time if the audit tender is not accepted. The firm will not be paid for the
time spent putting the tender proposal together.

 Setting an uncommercially low fee in order to win the contract (see 'lowballing'
in the previous chapter).

 Making unrealistic claims or promises in order to win the contract.

2.2 Information required for the proposal

 What does the potential client expect from its auditors?

 What timetable does the client expect: an interim audit followed by a final audit
or a longer final audit after the year-end?

 By what date are the audited financial statements required?

 What are the company’s future plans, e.g. public flotation, expansion,
contraction, concentration on certain markets?

 Are there any perceived problems with the potential client's current auditors?

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