Question

Mini completed all pre-engagement risk management procedures (SAN, CAF, EAF) except executing the contract, for a high risk client. She commenced the work on the engagement without the signed EL after obtaining approval from the FRP. The EL was signed after 23 days and the

work was carried out as usual. Was the risk formality in place in the given situation?

Answer 1

The risk formality was not fully in place in the given situation because the work was commenced without the signed engagement letter. It is important to have all necessary documents in place before starting work to ensure proper risk mitigation.

Step-by-step explanation:

The risk formality was not fully in place in the given situation. Although Mini completed all pre-engagement risk management procedures, she commenced the work without the signed engagement letter (EL) and obtained approval from the FRP. The EL was signed after 23 days, but the work had already been carried out. It is important to have all necessary documents in place before starting work to ensure proper risk mitigation.