An auditor may be appointed either as a result of one-to-one communication between the auditor and the Management or through a tendering process followed by the Management. Discuss various steps where Auditor is appointe

The Audit Engagement An auditor may be appointed either as a result of one to one communication between the auditor and the Management or through a tendering process followed by the Management. In case where the appointment of auditor is through a tendering process by the management, following steps take place. Pre-bid meeting with the management to discuss upon various aspects of the tender, scope of work terms of engagement, prior year audit results, appropriateness of reporting framework, understanding business and environment including internal control system, design & operation, audit process, periodicity of audit determining nature and conflict of interest etc. Submission of technical bid as per the requirements of the tender document of the management. Signing the engagement letter with the management. Certificate by auditor before accepting an audit. The Auditor shall furnish a certificate to the Appointing Authority that: (a) The number of audits are within the ceiling prescribed by the ICSI as specified in para 2 of CSAS 1. (b) No substantial conflict of interest as defined in para 3 of CSAS-1 exists with the Auditee. (c) There is no restriction to render the professional services under ICSI Guidelines. (d) He is not debarred to undertake such audit under any law or under the disciplinary mechanism of the ICSI