South Africa Auditing Help! Client acceptance or Rejection?

[shahin]

A company chain of retail shops which sells pornographic materials and massage parlous. It is a Legal company.
The holding company auditors have declined the audit.

Factors why I would accept/reject the firm:
1)Seek clearance of confidentiality to speak holding auditors
2) If previous auditors declined because of professional or unethical reasons reject the client.
3)if reasons are not for valid purposes determine if the auditing firm wishes to accept risk of a bad reputation if things go wrong.


Please correct me if I'm wrong or missing out factors that should be included.

 

[Fidget]

1) yes
2) don't be too hasty to reject - you'll have to judge for yourself once you know the reasons for the previous auditors rejecting the audit.
3) Risk of a bad reputation comes with any audit the firm does if things go wrong. If you mean does the firm want to be associated with a client selling pornography, then that's a matter for the firm to decide. That said, attending the inventory count will likely be a bit more interesting than a warehouse full of washing machines.