".14 The engagement partner should be satisfied that appropriate procedures regarding the acceptance and continuance of client relationships and audit engagements have been followed and should determine that conclusions reached in this regard are appropriate. (Ref: par. .A7–.A8)
.15 If the engagement partner obtains information that would have caused the firm to decline the audit engagement had that information been available earlier, the engagement partner should communicate that information promptly to the firm so that the firm and the engagement partner can take the necessary action. (Ref: par. .A8)"
The engagement partner is responsible for ensuring that the acceptance and continuance procedures are followed in accordance with AU-C Section 210. And if he later obtains information that would have caused the firm to decline the audit engagement, he should communicate that information to the firm so they can take the appropriate action.
According to QC Section 10, The following information is helpful for the engagement partner to access whether to accept or decline an audit engagement:
- The integrity of the principal owners, key management, and those
charged with governance of the entity - Whether the engagement team is competent to perform the audit
engagement and has the necessary capabilities, including time
and resources - Whether the firm and the engagement team can comply with relevant
ethical requirements - Significant findings or issues that have arisen during the current
or previous audit engagement and their implications for continuing
the relationship
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