Enumerate factors which may incline the auditor not to accept a nomination, for an audit previously carried out by another auditor? Auditing Help

Following factors may influence the auditor not to accept the nomination:

  1. Inability to serve the client.
  2. Conflict of interest with any existing client.
  3. Undue dependence on one client.
  4. Unusual pressures on management.
  5. Lack of cooperation from management.
  6. Excessive inherent risks.
  7. If the report of previous auditors was qualified, the possibility of repetition of such issues..
  8. Inadequacy of internal controls as reported by previous auditors.
  9. Non audit services provided by the associate of the audit firm. for example AB & company chartered accountants accept nomination for audit while AB & Co management consultants may be involved in providing management consulting taking management decision and implementing those decisions. This would imply that the audit firm will be giving comments on the decisions that the associate firm has taken.
  10. Integrity of client.

Posted on November 2, 2015 in Overall Objective of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing

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