What is the most common method of obtaining an audit?
By tender, where an audit firm bids to carry out the work
During the tender the firm will set out the reasons why it should be chosen to carry
out the audit, for example:
> proposed fee
quality of service
knowledge of the business and industry
proposed personnel
According to EU legislation, how often must all UK PIEs retender for their external audit and change auditor
Rentender every 10 years
Change auditor at least every 20 years
What are fee determinants according to ICAEW code of ethics
> personnel (more qualified = more expensive)
time taken for work ( longer/ short notice = more expensive)
expenses incurred
nature of client/ business operations
degree of risk/ responsibility
Importance of work to client
ISA 220 and ISQM 1 require an auditor to
obtain information
considered necessary in order to decide whether to continue an existing
engagement or accept a new engagement.
Acceptance matters to consider
> risk analysis
ethical considerations
resources
companies act 2006
