Assume that your firm is considering accepting NewSkin Pharma as a new audit client. NewSkin is a start- up biotech firm that has publicly traded stock on NASDAQ. Your audit partner has asked you to perform some prelim nary work for the firm’s client acceptance process.

Required:

a. Prepare a list of business risks that NewSkin likely will face as a start- up biotech firm.

b. Choose two of these risks and consider how they might affect your decision to accept NewSkin as a client.