The Firm has considered types of engagements that the Firm would not accept or which would be accepted only under certain conditions.
The Firm evaluates Clients upon the occurrence of specified events to determine whether the relationships ought to be continued and the events include
(1) The expiration of a time period;
(2) A major change in one more of the following:•Management, Directors, Ownership, Legal Advisers, Financial condition, Litigation status, Scope of the engagement ,Nature of the client’s business; and the existence of conditions which would have caused the Firm to reject a client, had such conditions existed at the time of the initial acceptance
The Firm has assigned responsibility for administering and monitoring compliance with the Firm’s policies and procedures for retention of clients.
The Firm obtains from personnel on an annual basis, stating that:
- They are familiar with the Firm’s policies and procedures.
- Prohibited relationships do not exist, and
- Transactions prohibited by the Firm’s policy have not occurred
- Prohibited investments are not held and were not held during the period
The personnel adhere to the Statement of Code of Conduct and Professional ethics issued by the Indian Institute of Chartered Accountants (ICAI) especially relating to the principles of independence, integrity, objectivity, confidentiality and professional behavior
Procedures have been adopted for evaluation of prospective clients and for their approval as clients.
Evaluation procedures include the following:
Obtain and review available financial statements regarding the prospective client, such as annual reports, interim financial statements and tax returns.
Enquire of third parties as to any information regarding the prospective client and its management and principals which may have a bearing on evaluating the prospective client. Enquiries nay be directed to the prospective client’s bankers, legal advisers’ investment bankers, and others in the financial or business community who may have such knowledge.
Communicate with the outgoing auditors. Request in writing of the outgoing auditors if there any unusual circumstances surrounding the proposed change which the Firm should be aware of so that it may determine whether it should accept nomination
Consider circumtrances which would cause the Firm to regard the engagement as one requiring special attention or presenting unusual risks.
The Firm establishes the objectives and processes necessary to deliver results in accordance with customer requirements and the organization’s policies by
Implementing the processes
Monitoring and measuring processes and product against policies, objectives and requirements of the Client and reporting and documenting the results.
By taking decisions to continually improve process performance.
By ensuring that a quality management system is established, implemented, maintained and improved
By reviewing the Quality Management Systems at planned intervals to ensure continuing suitability, adequacy and effectiveness with maintenance of suitable records.
Appropriate personnel are informed of the Firm’s policies and procedures for accepting clients
The Firm always takes a letter of no objection, before accepting an audit or assignment, previously audited by another Auditor. Whenever it came to light that any audit outstanding was due, the PU immediately followed up to have the dues released to the previous Auditor
The Firm has never accepted an appointment where the previous auditor was unjustly removed
The Firm would not accept assignments if threats to independence were perceived. It would withdrawn from assignments if threats to independence were perceived
Clients are evaluated upon the occurrence of specified events to determine whether the Relationships ought to be continued.
Events specified for this purpose include:
The expiration of a time period;
A major change in one more of the following:
• Management
• Directors
• Ownership
• Legal Advisers
• Financial condition
• Litigation status
• Scope of the engagement
• Nature of the client’s business; and The existence of conditions which would have caused the Firm to reject a client had such conditions existed at the time of the initial acceptance