Instead of a role on the Audit Committee, assume the role of a partner in a public accounting firm that is considering whether or not to propose on a company that recently issues a RFP.

Required:

a. List the steps the auditing firm should take when deciding whether or not to propose to a potential client company.

b. List the important considerations of the firm concerning its staff, industry expertise, potential engagement profitability?

c. What should the auditor investigate about the company?