To assess Audit Acceptance and Continuance there is an optional page entitled Governance Checklist. The work item says:
As a way to assess the client to provide information for making a decision regarding acceptance or continuance, and as a planning tool to help with identification of potential risk areas at the start of the audit process, you may use a Governance Checklist to obtain pertinent information (a page to be shared with and completed by those charged with governance of the entity). Do you wish to create this checklist?
- This page helps us to make a preliminary assessment, from the perspective of governance, of what the relevant issues may be.
- There are general questions about Going Concern, Litigation, Fraud, Related Parties etc.
- There are versions available for both Audits and Review Engagements.
- See extract:
- When a response requires an explanation a comment box pops up to prompt this.
- For audits, There are also more formal Fraud Risk Assessment - Governance page in the D section which covers the fraud issues specifically.
- If the auditor is confident that this has been sufficiently covered in the Governance Checklist it may perhaps be cross-referenced to that work rather than being addressed again. This is an issue of auditor judgement.