Practice Alert issued on Acceptance and Continuance of Clients and Engagements.

• Position: Accounting & auditing news - Brief Article

The Professional Issues Task Force has issued Practice Alert 2003-03, Acceptance and Continuance of Clients and Engagements, to provide practitioners and their firms with guidance regarding the establishment of policies and procedures for deciding whether to accept or continue a client relationship and whether to perform a specific engagement for that client. The alert provides guidance with respect to the following elements of an effective client acceptance program:

* Availability of competent personnel to perform the engagement.

* Communication with predecessor accountants or auditors.

* Assessment of management's commitment to the appropriate application of generally accepted accounting principles.

* Assessment of management's commitment to implementing and maintaining effective internal...