3 Planning preliminary considerations

Recurring audits We should regularly review the terms of engagement and update for all changes including changes in the levels of assurance provided. We should also consider whether the client needs to be reminded of the existing terms of engagement. Written agreement must be obtained for revised terms. The letter should be reviewed before we begin our risk assessment procedures to ensure that:
210.13
we are completely aware of our objectives; the letter still covers all the client's circumstances; and the terms of engagement will allow us to achieve our audit objectives.
Acceptance of change in engagement Where the client requests a change in the engagement to a lower level of assurance, we should consider the appropriateness of doing so. We should not agree to such a change unless there is reasonable justification for doing so. Where we cannot agree to the change and we are not permitted to continue with the original engagement, we should resign as auditors and consider whether we have a contractual or other obligation to report this to other parties.	210.14-17

10/19 3- Part 2