OVERVIEW
It is easy to focus on the demands of practice in performing an engagement rather than the vehicle used in one’s modus operandi. But safety checks before entering the freeway are a good idea. For the SMSF auditor, they are essential.
Prior to the acceptance of any audit engagement, the auditor is required to perform preliminary procedures to assess whether it is appropriate that the audit engagement is accepted. These preliminary activities include the satisfaction of fundamental ethical requirements, quality control procedures and independence assessments. The auditor is required to document the agreed terms of the engagement addressing specific objects in the engagement document.
Whether the audit is a new engagement or a continuing engagement, the auditor is required to have established acceptance and continuance procedures. This module will examine these vital preliminary audit activities and the engagement process
LEARNING OUTCOMES
On completing this module, students should be able to:
• describe the preliminary audit engagement activities
• explain the audit engagement process
• apply the acceptance and continuance procedures
• explain the requirements and objectives of the audit engagement letter.
