1) Prior to the engagement letter phase, what does the auditor need to do in order to determine client acceptance or rejection? How would this differ if the client was a returning client?

2) What is involved in the "plan the audit" stage?

*3) How will auditors identify the qualitative factors?

4) When we consider misstatements, will we net errors against each other?

5) Is all fraud material?

6) Here is an example: We have a large retail company. At one of the thousands of stores, an employee steals some small amount of money. This is fraud. It is an immaterial amount to the company. Does this make the fraud material?

7) How will the type of business affect materiality?

8) Do we set materiality thresholds for the various accounts and transaction classes and overall, materiality levels when we conduct an audit?

9) How does the auditor "quantify" the qualitative factors? In other words, how will the auditor determine what changes materiality?