an initial audit of the Redhawks for your audit firm Tic and Tie. The audit firm that previously performed the audit (predecessor auditor) is named BeanKeepers. Look up the PCAOB Auditing Standards and the sections on Audit Planning (AS 2101) and Communications with Audit Committees (AS 1301).

1. Who at Tic and Tie is responsible for the audit of the Redhawks?
2. Tic and Tie should establish an understanding of the terms of the audit with whom at the Redhawks?
3. Who is the audit committee?
4. What does the audit committee do?
5. What additionally does Tic and Tie need to do because this is an initial audit?
6. Look up the audit standards for communicating with the predecessor auditor. Why should Tic and Tie try to talk to BeanKeepers about their audit of the Redhawks?
7. Give examples of three items that should be included in an engagement letter.