To protect themselves, before an engagement letter is submitted to a client, what should an auditor complete to assist in deciding whether to accept a particular client for an engagement?

Question

Quizplus · Accepted Answer

Before submitting an engagement letter to a client, an auditor should complete a client acceptance checklist. This checklist helps the auditor determine if they should accept a particular client for an engagement by considering factors such as the client's reputation, industry and regulatory environment, and the auditor's ability to provide the necessary expertise and resources. A management letter is a type of report that an auditor provides to a client after completing an audit, and a reliance letter and limited liability letter are not relevant to the client acceptance process.

To Protect Themselves, Before an Engagement Letter Is Submitted to a Client