While maintaining quality with respect to customer & customer relationship acceptance & continuation of client relationship and specific assignments, explain the procedure, the audit firm SS and Co., should estab

The firm should establish procedures for evaluation of prospective clients and for their approval as clients. Evaluation procedures could include the following: Obtain and review available secretarial records, annual reports, annual return, minutes book and ROC returns, regarding prospective client. Enquire from third parties as to any information regarding the prospective client and its management and principals which may have a bearing on evaluating the prospective client. Enquiries may be directed to the prospective client's bankers, legal advisers, investment bankers, and the financial or business community who may have such knowledge. Communicate with the outgoing Company Secretary. Request in writing if there are any unusual circumstances surrounding the proposed change which the firm should be aware of, so that it may determine whether it should accept nomination. Consider circumstances which would cause the firm to regard the engagement as one requiring special attention or presenting unusual risks. Evaluate the firm's independence and ability to serve the prospective client. In evaluating the firm's ability, consider needs for technical skills, knowledge of the industry and personnel. Determine that acceptance of the client would not violate the Code of Professional Ethics applicable to the firm, its partners and staff.