Question
Papa Nti and Papa Nua who just qualified as Professional Accountants have decided to enter into professional practice under a firm name Nana Nua &
Papa Nti and Papa Nua who just qualified as Professional Accountants have decided to enter into professional practice under a firm name Nana Nua & Associates. These two have been trainee accountants of an Audit and Assurance firm for three years before qualifying. For their first engagement, the CEO of Merban Ltd. has nominated Nana Nua & Associates for appointment as auditors of his company though Merban Ltd was a former client of their former firm, Papa Nti and Papa Nua were never on the engagement team of Merban Ltd. As beginners Papa Nti and Papa Nua have intended to follow best practice as required by ISQC 1 Quality control for firms that perform audits and reviews of financial statements, and other assurance related services. However they are not clear of the matters that they have to consider in their acceptance decision according to the standard. They have approached you, a senior partner of their former firm for advice.
Required: Advise Papa Nti and Papa Nua on the matters that they may have to consider in relation to the acceptance decision on their nomination.
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