Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Professional appointments

Preston Assurance is invited to audit Maple Logistics Ltd. The firm currently has no spare audit staff with transport sector experience, and the audit would need to be completed within a tight deadline. Which statement best describes how this affects acceptance under ISQM 1?

Before accepting, the firm must judge whether it has the competence, capabilities and time to perform the engagement to professional standards, and it should accept only if it can obtain the needed resources. Recruiting after signing or relying on a high fee does not meet this requirement.

  1. AResources are not relevant to acceptance, as the firm can recruit staff after the engagement letter is signed
  2. BAcceptance depends solely on the fee being high enough to cover additional recruitment costs
  3. CThe firm should accept only if the client agrees to extend the deadline beyond statutory limits
  4. DThe firm should consider whether it has the competence, capabilities and time to perform the engagement, and should accept only if it can obtain the necessary resourcesCorrect

Explanation

ISQM 1 requires the firm to accept or continue engagements only where it can perform them in accordance with professional standards, which includes having appropriate competence, capabilities and time. Recruiting later or relying on fees does not satisfy this requirement, and statutory deadlines cannot be extended by agreement.

Did you get it right without looking?

One question tells you little. A timed set on Professional appointments shows your real accuracy, how long you take and where you lose marks.

Practise Professional appointmentsFree diagnostic mock

More Professional appointments questions