3 Planning preliminary considerations

3.3 Money laundering

This audit procedures manual does not address anti-money laundering procedures. The firm should ensure that it complies with the requirements of its own procedures that may derive from local statute, regulation or from membership of a network of firms.

1.1Acceptance of appointment / reappointment

Before we begin the detailed planning process we should consider whether there are any ethical reasons why we should not accept reappointment as auditor for the forthcoming assignment. To assist us with this, a checklist is completed. This schedule is recorded on B12 of the current file. Where threats to independence are identified on B12, B13 is completed recording the safeguards that we put in place to offset the threats. Examples of appropriate safeguards may include: individual excluded from the audit team; work undertaken by an individual not involved in the audit; review of work by an additional partner or senior member of staff not involved in the audit; engagement quality control review; or external independent hot / cold file review.
When considering whether to accept appointment / reappointment as auditor, we should have regard to ISA 220 – Quality Control for an Audit of Financial Statements. This, along with ISQC 1 require the following matters to be considered in this situation: our independence; our ability to serve the client properly; and the integrity of the client's management.	220.12 ISQC1.26
These matters are extremely important and accepting work which we have not the competence or experience to undertake can increase the chance of liability. Any doubts on these matters should be communicated to a partner immediately. The decision regarding acceptance of appointment should be confirmed by the firm as a whole or by a designated partner or committee.
Further details of our procedures in relation to the Code of Ethics are set out in part 4 of this manual.