Parker is the in-charge auditor with administrative responsibilities for the upcoming annual audit of FGH Company, a continuing audit client. Parker will supervise two staff assistants on the engagement and will visit the client before the fieldwork begins. Parker has started the planning process by preparing a list of procedures to be performed prior to the beginning of interim work. The list includes:

1. Review correspondence and permanent audit files.

2. Review prior-year's audit working papers, financial statements, and auditor's report.

3. Discuss with engagement team (firm personnel responsible for audit and nonaudit services to the client) matters that may affect the audit.

4. Discuss with management current business developments affecting the client.

Required:

Complete Parker's list of procedures to be performed prior to beginning the interim work.