In early summer, an auditor is advised of a new assignment as the senior auditor for Lancer Company, a major client for the past five years. She is given the engagement letter for the audit covering the current calendar year and a list of personnel assigned to the engagement. It is her responsibility to plan and supervise the fieldwork for the engagement.

Required
Discuss the necessary preparation and planning for the Lancer Company annual audit before beginning fieldwork at the client’s office. In your discussion, include the sources that should be consulted, the type of information that should be sought, the preliminary plans and preparation that should be made for the fieldwork, and any actions that should be taken relative to the staff assigned to the engagement.