| 6. | In order to establish whether the preconditions for an audit are present, the auditor shall: |
| (a) | Determine whether the financial reporting framework to be applied in the preparation of the financial statements is acceptable; and (Ref: Para. A2-A10) |
| (b) | Obtain the agreement of management that it acknowledges and understands its responsibility: (Ref: Para. A11-A14, A20) |
| (i) | For the preparation of the financial statements in accordance with the applicable financial reporting framework, including where relevant their fair presentation; (Ref: Para. A15) |
| (ii) | For such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and (Ref: Para. A16-A19) |
| (iii) | To provide the auditor with2a: |
| a. | Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters; |
| b. | Additional information that the auditor may request from management for the purpose of the audit; and |
| c. | Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence. |
| 2a Sections 499 and 500 of the Companies Act 2006 set legal requirements in relation to the auditor's right to obtain information. For the Republic of Ireland, relevant requirements are set out in Section 193(3), Companies Act 1990. |
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