Auditing and Assurance Standards and Guidance

Auditing Standards (Ireland)

FRC ISAs (UK and Ireland) applicable for periods beginning on or after 15 December 2010 but before 17 June 2016

ISA (UK and Ireland) 300 Planning an audit of financial statements

Application and Other Explanatory Material

Preliminary Engagement Activities (Ref: Para. 6 )

A5.	Performing the preliminary engagement activities specified in paragraph 6 at the beginning of the current audit engagement assists the auditor in identifying and evaluating events or circumstances that may adversely affect the auditor's ability to plan and perform the audit engagement.

A6.	Performing these preliminary engagement activities enables the auditor to plan an audit engagement for which, for example:

The auditor maintains the necessary independence and ability to perform the engagement.

There are no issues with management^8a integrity that may affect the auditor's willingness to continue the engagement.

There is no misunderstanding with the client as to the terms of the engagement.

A7.

The auditor's consideration of client continuance and relevant ethical requirements, including independence, occurs throughout the audit engagement as conditions and changes in circumstances occur. Performing initial procedures on both client continuance and evaluation of relevant ethical requirements (including independence) at the beginning of the current audit engagement means that they are completed prior to the performance of other significant activities for the current audit engagement. For continuing audit engagements, such initial procedures often occur shortly after (or in connection with) the completion of the previous audit.

^8a In the UK and Ireland, the auditor is also concerned to establish that there are no issues with the integrity of those charged with governance that may affect the auditor's willingness to continue the engagement.