A couple of weeks ago, we talked about what the audit committee would want to consider in searching for an auditor. This week, I would like for us to discuss things the auditor will consider in accepting a client. As a group, I would like for us to consider what we would include in a client acceptance checklist (including documents you might gather to make the client acceptance decision). Again, please don't cut and paste off the internet. I want this to be your thoughts on the matter. Keep in mind that as you think about client characteristics, you should consider litigation risk and audit risk. You might also consider factors that would impact costs and whether the auditor is capable of conducting the audit. CPA firms have these checklists and this is something the PCAOB examines when reviewing a CPA firm. A client acceptance process is one of the hallmarks of a high quality CPA firm. As an aside, I am interested in your opinion on the following as I am considering a research project on the topic. Tax practitioners don't have to have client acceptance criteria. It is voluntary. Do you think a tax department without this puts the reputation of the CPA firm at risk? Would having a "bad" tax client have a negative reputational impact on the audit side of the same CPA firm