1. Pre-Engagement Procedures

Before the audit begins, the auditor performs pre-engagement acceptance or continuance procedures.This includes:

  • an independence assessment;
  • a pre-engagement assessment; and
  • communications with the previous auditor (if applicable).

 Throughout this process, you can expect:

  • a letter that communicates the auditor’s independence and compliance with relevant professional standards; and
  • disclosure of all relationships between the auditor and the entity and its related entities that may affect the auditor’s independence.

Once the pre-engagement assessment is complete, the auditor issues an Engagement Letter with:

  •  engagement objectives, scope and limitations;
  •  management's responsibilities;
  •  responsibility for adjustments;
  •  the auditor's responsibilities; and
  •  other matters, such as fees.