Client acceptance or continuance

The first step in the audit process is for the auditor to decide whether to accept the client (if it's a new client) or continue with the client (if it's a pre-existing client). No auditor wants a client that is dishonest, so auditors typically speak with the predecessor auditor about the integrity of the client's management before taking a new client (the client will need to waive confidentiality for this to happen).
Prior to accepting the client, the auditor should also read the client's annual report, consider the need for specific expertise or a specialist, and make sure that the auditor is independent.-
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[@s82452]

You know this is the real deal, when accessing the same chapter in my textbook is almost word for word the same main points. Really appreciate this content, almost done with my accounting degree :D

[@LordEskay]

Concise and clear. The best. What I needed. Thank you so much

[@MX-xc9rx]

Which Software do you use to write on? The black/backboard thingy? PS: Loving all the content

[@Edspira]

I software I use is Camtasia Studio, and I have a Wacom Bamboo tablet that allows me to write on the screen.

[@jarethwallen3728]

Very Helpful just what I need for my assignment.

[@alextian9647]

Thx

[@MikeRuizzzzzz]

What would you ask the predecessor auditor? After the client waived you

[@s82452]

Essentially any conflicts with management, internal controls (or lack of), adherence to regulations and compliance in general, possibly finding out why the client decided to hire new external auditors, any limitations encountered. (some examples, I'm still learning too).

[@MyFinancialFocus]

Background history!

[@khushboosankhla3954]

Thank you for this😃

[@mohamafkarzon9201]

Why do companies pay to be audited? If companies are participating in non-ethical behaviors why would they hire an independent auditing firm?

[@mimi_13_10]

Because of the regulatory frameworks that requires public companies to be audited

[@s82452]

Companies are required to create and disseminate financial statements annually. These statements may be put together by their accounting department and audited by an "internal auditor". Afterwards, they must hire an external (independent) auditor to validate (or provide assurance) the integrity of those statements, examine internal controls, sample transactions, look for fraud, etc. The SEC requires public companies to disseminate this information and for ethical reasons they must hire an external auditor that has no "benefit" in subordinating their objectivity.