Unformatted text preview: d strategies).
The engagement partner or manager ensures that the audit team is composed of team members who have the appropriate audit and industry experience
for the engagement. The partner or manager also determines whether the audit
will require the involvement of spets (e.g., information technology (IT),
actuarial, or tax spets).
The independence of the auditor from the client in terms of freedom from
prohibited relationships that might threaten the auditor’s objectivity must also
be established up front.
Finally, the auditor establishes an understanding with the client regarding
the services to be performed and the terms of the engagement. Such terms would
include, for example, the responsibilities of each party, the assistance to be provided by client personnel and internal auditors, the timing of the engagement,
and the expected audit fees. Chapter 3 addresses the preliminary engagement
activities of the audit process in more detail.
Plan the Audit Proper planning is important t...
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