30. Can the auditor accept the audit engagement if management refuses to acknowledge the pre-conditions for an audit?

If the preconditions set out in Canadian Auditing Standard (CAS) 210, Agreeing the Terms of Audit Engagements, are not present the auditor shall not accept the proposed audit engagement, unless required by law or regulation to do so.

CAS 210, paragraph 6(b), sets out the preconditions for an audit as being present when management acknowledges certain fundamental responsibilities to:

• prepare financial statements in accordance with the applicable financial reporting framework;
• have such internal control as management determines is necessary for the preparation of the financial statements; and
• provide the auditor with access to all information relevant to the preparation of the financial statements and unrestricted access to persons within the entity from whom the auditor determines it is necessary to obtain audit evidence.