Meet Electronics Ltd., a manufacturing company, is planning to appoint statutory auditor for the financial year 2024–25. The Board has approached CA…

SA 210 - Agreeing the Terms of Audit Engagements: In order to establish whether the preconditions for an audit are present, the auditor of Meet Electronics Ltd., CA S shall: (1) Determine whether the financial reporting framework is acceptable; and (2) 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; (ii) For the internal control as management considers necessary; and (iii) To provide the auditor with: Access to all information 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. Therefore, CA S should accept the audit engagement only after determining that an acceptable financial reporting framework is used and after obtaining management's acknowledgement and understanding of its responsibilities relating to preparation of financial statements, internal control and providing necessary access and information required for the audit.