AUD Engagement Acceptance · Updated November 2026
Before the Audit Starts, Why Might the Firm Say No?
Client acceptance is a risk decision, not just a sales decision.
Independence
The firm first asks whether it can satisfy applicable independence requirements.
Management integrity
Serious concerns about management honesty can make the engagement too risky even if the fee is attractive.
Preconditions
Management must acknowledge responsibility for the financial statements, internal control, and providing information and access.
Competence and resources
The firm needs appropriate skills, time, staff, and specialists when necessary.
Continuance
Existing clients are reevaluated when disputes, management changes, scope limitations, or integrity concerns arise.
The takeaway
The firm evaluates whether it should perform the audit before deciding how to perform it.
Related Summit guides
FAQ
Does independence alone guarantee acceptance?
No.
Is management integrity relevant?
Yes.
Are existing clients reevaluated?
Yes.