02 -- Risk Assessment

02 Risk - CPA AUDITING STUDY UNIT 2 Risk Assessment Core Concepts A Pre-Engagement Acceptance Activities An early appointment is advantageous

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CPA AUDITING - STUDY UNIT 2 Risk Assessment: Core Concepts A. Pre-Engagement Acceptance Activities. An early appointment is advantageous because acceptance near or after the end of the year may not permit an adequate audit. Client acceptance also includes the evaluation of the integrity of existing and new clients. 1. The successor auditor is required to communicate with the predecessor before accepting the engagement, and both must protect the confidentiality of client information. 2. The auditor is required to establish an understanding with the client regarding the services to be performed. The audit scope, limitations, expectations, and fees for services should be set forth in a contract evidenced by an engagement letter . B. Planning involves developing an overall strategy for the audit. The auditor should consider the nature, extent, and timing of work to be performed and is required to prepare a written audit program . 1.
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This note was uploaded on 08/29/2010 for the course CBEAM AUD taught by Professor Gleim during the Spring '10 term at De La Salle Lipa.

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02 Risk - CPA AUDITING STUDY UNIT 2 Risk Assessment Core Concepts A Pre-Engagement Acceptance Activities An early appointment is advantageous

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