Section Acceptance and Continuance of Client Rel - Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements - Acceptance and Continuance of Client Relationships and Specific Engagements | Zoe
Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements
Acceptance and Continuance of Client RelAcceptance and Continuance of Client Relationships and Specific Engagements
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Acceptance and Continuance of Client Relationships and Specific Engagements
The firm shall establish the following quality objectives that address the acceptance and continuance of client relationships and specific engagements:
Judgements by the firm about whether to accept or continue a client relationship or specific engagement are appropriate based on:
Information obtained about the nature and circumstances of the engagement and the integrity and ethical values of the client (including management, and, when appropriate, those charged with governance) that is sufficient to support such judgements; and (Ref: Para. A67–A71)
The firm’s ability to perform the engagement in accordance with AUASB standards and applicable legal and regulatory requirements. (Ref: Para. A72)
The financial and operational priorities of the firm do not lead to inappropriate judgements about whether to accept or continue a client relationship or specific engagement. (Ref: Para. A73–A74)