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Preconditions for an audit-SA210


 As per SA 210 'Agreeing the Terms of Audit Engagements", preconditions for an audit may be defined as the use by management of an acceptable financial reporting framework in the preparation of the financial statements and the agreement of management and, where appropriate, those charged with governance to the premise on which an audit is conducted.

In order to establish whether the preconditions for an audit are present, the auditor shall:



Determine whether the financial reporting framework is acceptable; and


Obtain the agreement of management that it acknowledges and understands its responsibility:

(i)   For the preparation of the financial statements in accordance with the applicable financial reporting framework;

(ii)  For the internal control as management considers necessary; and

(iii)To provide the auditor with


Access to all information such as records, documentation and other matters;


Additional information that the auditor may request from management for the purpose of the audit; and


Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence.

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