Accounting · Auditing and Assurance
When a potential new audit client is identified, which of the following is the most critical factor for the audit firm to assess before accepting the engagement, in accordance with both ISA 210 and the ACCA Code of Ethics?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The fee arrangement for the engagement and the client's ability to pay the fee.
- 2The availability of competent personnel and the necessary time to perform the audit in accordance with ISAs.
- 3The integrity of the client's principal owners, management, and those charged with governance (TCWG), by communicating with the outgoing auditor.✓
- 4The client's compliance with all relevant laws and regulations.
Correct answer
The integrity of the client's principal owners, management, and those charged with governance (TCWG), by communicating with the outgoing auditor.
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