Luck Ltd., a mid-sized manufacturing company, has approached CA S, a qualified Chartered Accountant, to conduct the audit for the financial year…

In order to establish whether the preconditions for an audit are present, CA S shall: (I) Determine whether the financial reporting framework is acceptable and (II) Obtain the agreement of management that it acknowledges and understands its responsibility: (i) For the preparation of the financial statements in accordance with the applicable financial reporting framework including where relevant their fair representation; (ii) For such internal control as management considers necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and (iii) To provide the auditor with: Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;Additional information that the auditor may request from management for the purpose of the audit; andUnrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence.