Press Releases/News Alerts
Oct 20, 2010
TAC and FOF
Forum of Firms Issues Paper on Client Acceptance and Continuance
Asking the right questions when considering either acceptance of new, or continuance with existing, clients is a key first step for establishing a quality relationship between the auditor and client, according to a recent paper issued by the Transnational Auditors Committee, the Executive Committee of the Forum of Firms. Titled Client Acceptance and Continuance, the paper summarizes current practices in several of the large networks of international accounting firms and examines how asking the right questions can help ensure that only those entities that meet the same standards of quality as the audit firm be accepted or continued.
“Any business wishing to establish quality relationships with quality clients needs robust processes in place,” said Forum of Firms Chair Robert Dohrer. "Understanding the best practices in this area will hopefully contribute to all accounting firms being able to strengthen their approach and create more mutually beneficial auditor-client relationships—which ultimately will contribute to improved public confidence in the industry."
The paper focuses on how the large networks of international accounting firms have implemented the requirements of International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance, and Related Services Engagements in their client acceptance and continuance policies and procedures. The paper also discusses related tools and devices firms have employed to strengthen their client acceptance and continuance decision-making processes.
Client Acceptance and Continuance can be downloaded free of charge from the Forum of Firms section of the IFAC Publications & Resources site at http://web.ifac.org/publications.
About the Forum of Firms
The Forum of Firms (www.ifac.org/Forum_of_Firms) is an association of networks of international accounting firms that perform transnational audits. Members of the Forum have committed to adhere to and promote the consistent application of high-quality audit practices worldwide, including the use of International Standards on Auditing, and the maintenance of appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board. Through their organizations, members also conduct globally coordinated internal quality assurance reviews on a regular basis and have policies and methodologies that conform to the International Federation of Accountants' Code of Ethics for Professional Accountants. The Transnational Auditors Committee is the Executive Committee of the Forum of Firms and a committee of the International Federation of Accountants (IFAC).
IFAC (www.ifac.org) is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of 159 members and associates in 124 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.