You have received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001. Required: Why is it important for the auditor to hold discussions with the client‘s senior staff?

It is important for an auditor to hold discussions with the clients senior staff in order to:-
1) Agree on the terms of engagement which clearly state and specify the scope of the audit.
2) Determine any changes that have taken place in the client entity such as:-
– changes in accounting policies used
– changes in senior management
– changes in product lines.
3) To ensure management clearly understand their responsibilities especially in regards to preparing financial statements that show a true and fair view.
4) To obtain as much information as possible about the client e.g, the current trading circumstances the reliability of the accounting and internal control system which will help the auditor in formulating an appropriate approach for the conduct of the audit.

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You have received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001. Required: Why is it important for the auditor to hold discussions with the client‘s senior staff?
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You have received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001. Required: Why is it important for the auditor to hold discussions with the client‘s senior staff?

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