AU-C Section 210.06 (Part 1 of 3): The Preconditions for an Audit

AU-C Section 210.06 says:

"The auditor should...establish whether the preconditions for an audit are present..."

The preconditions for an audit are the use by management of an acceptable financial reporting framework in the preparation and fair presentation of the financial statements and the agreement of
management and, when appropriate, those charged with governance, to the premise on which an audit is conducted.

The premise is that the management and those charged with governance acknowledge and understand their responsibility:

• for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework;
• for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; and
• to provide the auditor with
• access to all information of which management and, when appropriate, those charged with governance are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters;
• additional information that the auditor may request from management and, when appropriate, those charged with governance 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.