A first statutory audit engagement: where the compliance work starts

Accepting a first statutory audit engagement calls for an orderly sequence: assessing independence and competence, the engagement letter, understanding the business and its internal control, planning and materiality, and finally setting up the working papers.

For companies appointing a control body for the first time, this is the moment to get the accounting records and the processes in order: a well-planned start reduces both findings and costs. The firm advises auditors taking on a first engagement as well as the companies being audited.

Summary note by Studio Ponchio, based on specialised tax sources. The text does not reproduce the original contributions and does not constitute professional advice.