LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Procedures regarding Client continuance as per SA-220

26 March 2019

As per SA-300, preliminary engagement activity shall be undertaken by the auditor or engagement partner ,in the case of recurring audit,which includes a point:
he shall perform procedures regarding the continuance of the client relationship as required by SA-220.
so what are the procedures actually?
please specify what type of procedures he can do?
please reply,thankyou

Reply
Follow
Share

2 Replies

Lisha Bansal (CA Finalist) (2595 Points)
Replied 29 March 2019

The Auditor should obtain information considered necessary in the circumstance before accepting an engagement with a new client, when deciding whether to continue an existing engagement and when considering acceptance of a new engagement with an existing client. The following information would assist the auditor in accepting and continuing of relationship with the client: (i) The integrity of the principal owners, key management and those charged with governance of the entity; (ii) Whether the engagement team is competent to perform the audit engagement and has the necessary capabilities, including time and resources; (iii) Whether the firm and engagement team can comply with relevant ethical requirements ; and (iv) Significant matters that have arisen during the current or previous audit engagement, and their implications for continuing the relationship.

1 Like