You have received a request form XYZ Ltd. to accept an appointment as their auditor
for the financial year ending 31 December 2001.
Required:
a) Explain the preliminary procedures you would carry out upon your appointment.
(6
marks)
b) What is the importance of a preliminary review? (4
marks)
c) Why is it important for the auditor to hold discussions with the client‟s senior
staff?
(6
marks)
d) State why it is important for an incoming auditor to hold consultations with the
outgoing auditor. (4
marks)