(New York/October 20, 2010) – Asking the right questions when considering either acceptance of new, or continuance with existing, clients is a key first step for establishing a quality relationship between the auditor and client, according to a recent paper issued by the Transnational Auditors Committee, the Executive Committee of the Forum of Firms. Titled Client Acceptance and Continuance, the paper summarizes current practices in several of the large networks of international accounting firms and examines how asking the right questions can help ensure that only those entities that meet the same standards of quality as the audit firm be accepted or continued.

“Any business wishing to establish quality relationships with quality clients needs robust processes in place,” said Forum of Firms Chair Robert Dohrer. “Understanding the best practices in this area will hopefully contribute to all accounting firms being able to strengthen their approach and create more mutually beneficial auditor-client relationships-which ultimately will contribute to improved public confidence in the industry.”

The paper focuses on how the large networks of international accounting
firms have implemented the requirements of International Standard on Quality Control (ISQC) 1, Quality Control for Firms that PerformAudits and Reviews of Financial Statements, and Other Assurance, and Related Services Engagements in their client acceptance and continuance policies and procedures. The paper also discusses related tools and devices firms have
employed to strengthen their client acceptance and continuance
decision-making processes.

Client Acceptance and Continuance can be downloaded free of charge from the
Forum of Firms section of the IFAC Publications & Resources site at
http://web.ifac.org/publications.

About the Forum of Firms

The Forum of Firms (www.ifac.org/Forum_of_Firms) is an association of
networks of international accounting firms that perform transnational
audits. Members of the Forum have committed to adhere to and promote the
consistent application of high-quality audit practices worldwide, including
the use of International Standards on Auditing, and the maintenance of
appropriate quality control standards in accordance with International
Standards on Quality Control issued by the International Auditing and
Assurance Standards Board. Through their organizations, members also conduct
globally coordinated internal quality assurance reviews on a regular basis
and have policies and methodologies that conform to the International
Federation of Accountants” Code of Ethics for Professional Accountants. The
Transnational Auditors Committee is the Executive Committee of the Forum of
Firms and a committee of the International Federation of Accountants (IFAC).