ACCA Audit and Assurance (F8) Practice Exam

Before accepting an audit appointment, what is one action auditors must take?

1. Ensure adequate resources

2. Obtain client references

3. Communicate with current auditors

4. All of the above

The correct answer is: All of the above

Before accepting an audit appointment, auditors must take several essential actions to ensure they are prepared and able to conduct the audit effectively. Each of the listed actions plays a critical role in the decision-making process. Ensuring adequate resources is vital, as auditors must verify that they have the necessary staff, skills, and tools to carry out the audit efficiently. This includes considering the complexity of the client’s operations and the timeframe required to complete the audit. Obtaining client references is another important step. This allows auditors to assess the client's reliability and integrity and to understand any concerns that may affect the audit relationship. Positive references can provide reassurance that the client maintains appropriate financial practices and compliance. Communicating with current auditors is a crucial practice to gain insights into any potential issues or concerns. This communication can reveal important information about the client's financial practices, internal controls, or relationships, which helps the incoming auditors to make an informed assessment of the risks they might face. Each of these actions contributes to ensuring a successful audit engagement, and therefore, considering all of them is essential before accepting an audit appointment.