Doubts about management's integrity, independence threats or lack of the required expertise may lead to declining the engagement. The assessment is repeated and documented every year.
Source: KYS 1, BDS 220, Etik Kurallar
Related terms
International Standard on Quality Management (ISQM 1)The standard requiring audit firms to design and operate a risk-based system of quality management to assure audit quality.Auditor independenceThe auditor being free of relationships and interests that could affect their objectivity, and being perceived as such by third parties.Audit engagement letterA written agreement setting out the objective and scope of the audit, the applicable framework, the responsibilities of the auditor and management, and the form of the report.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: November 8, 2026 · This definition is for general information only.