From time to time, fee quotation for auditing services are requested by unidentified email senders. It is our firm’s policy not to entertain such request or even reply to any of the senders in avoiding possible virus infections or attacks.
It is a commonly misconception that auditor is keen to accept assignments (especially those inactive/smaller companies) without having to know the factual background of the potential client first. However, according to ethical requirements and auditing standards on accepting an audit or assurance assignment, auditors should first get through detailed procedures – which at least include review of the draft management financial reports and research on the company’s structure and management members. However, most of those emails only depict the number of transactions and the period covered. Information about, for instances, reporting deadline to meet, reporting standards to follow, reasons for change in auditor/ not appointing one upon incorporation, etc. should be made known to the auditor first.
Acceptance procedures and client development can be a costly exercise in any firm of accountants; which means they need to incur some kind of efforts as well as costs upfront. Wasting time to explore such low-value potentials and low likelihood of success outweighs efforts in getting the benefits on research and development during spare time.
One can consider inviting suitable firm to have a meeting first hoping that a business relationship can be built.