1) You have been approached by Lakeside Company to be their auditor. They have fired the previous audit firm and are now looking for a new firm. Please answer the following questions concerning this potential engagement.

a. What are the issues to consider in making this decision?

b. Based on your answer in a) above; What is the most important consideration for your firm in making this decision? Why?

c. What are the risks that Lakeside, the potential client, faces in engaging your firm as auditor? Why?

d. What part does the previous Audit firm play in your decision? Why?

e. If this was a real world situation and not a case study simulation; would you engage Lakeside as a client? Why