1. Confirm with client’s lawyer that all litigation probable of assertion has been disclosed to the auditor.
  2. Obtain an understanding of the client’s internal control activities.
  3. Determine whether there are any liens or encumbrances on assets that have been pledged as collateral.
  4. Consider the client’s plans and ability to meet imminent purchase commitments and cash flow obligations

  1. Provide reasonable assurance that personnel are adequately trained to fulfil their responsibilities.
  2. Minimize the likelihood of associating with clients whose management lacks integrity.
  3. Document the matters that are required to be communicated to the audit committee.
  4. Enhance the auditor’s understanding of the client’s business and its industry.

  1. Management is responsible for reporting to us any inadequate provisions for the safeguarding of assets.
  2. We will identify internal controls relevant to specific assertions that may prevent or detect material misstatements.
  3. Management agrees to correct all deficiencies in internal control activities identified by us.
  4. Management is responsible for making all financial records and related information available to us.

  1. A lack of segregation of duties in the entity’s accounting and payroll departments.
  2. Indications that reports of asset misappropriation are not investigated by management.
  3. The entity’s intention to omit from the financial statements substantially all of the disclosures required by GAAP.
  4. Management’s acknowledgement that the financial statements will be included in a written personal financial plan.