The steps I would take after appointment at the AGM include: –
1) I would obtain instructions from the client as to the scope of the work and whether this is in addition to what is assigned to me by the Company‘s Act in which case it should be put or referred to in a letter of engagement.
2) Considered whether my appointment was legally carried out as per the requirements of the company‘s Act. In particular I would obtain a copy of the resolution passed at the AGM appointing my firm as the auditors of the company.
3) I would issue a letter of engagement to the client. This letter would serve the purpose of defining the scope of my audit work and as a formal acceptance of the audit work.
4) I would seek for background information about the client. This would include the nature of its business, the owners of the company and its financial information. Such information will assist in evaluating the potential risk in associating with the client and also in planning the approach to be adopted in carrying out the work.
