Bartholomew Griffin, a relatively new partner for Cartman, Griffin, and Simpson LLP, Public Accountants has recently received a request to provide a bid to perform audit and other services for Gray Mountain Outfitting, a large regional retailing organization with more than 150 stores across North America and Europe. The Director of Marketing at Gray Mountain, suggested Cartman, Griffin, and Simpson LLP because she heard good things about the firm and her cousin is a staff accountant for Cartman, Criffin, and Simpson LLP. Bartholomew has gathered the following information about Gray Mountain: . Gray Mountain is a fast-growing company specializing in premium outwear and outdoor sports equipment. It has eight shareholders, Miles Morales, a creative entrepreneur, started Gray Mountain in 2001 and owns 51% of the company, while the remaining 49% is split equally between seven shareholders. Most shareholders are passive investors, but Miles is actively involved in the operations of Gray Mountain, as he is currently the Chief Executive Officer (CEO). Gray Mountain' skiing line of clothing is very popular in Europe, so a large part of the sales is made in euros. Gray Mountain tries to manage the foreign exchange risk by entering into complex cash flow hedges and purchasing forward contracts in euros. . Gray Mountain is looking for a new auditor, as they disagreed with their previous auditor about their revenue recognition policy, indicating that their previous auditor was too conservative. Gray Mountain has been showing a profit for the past two years, but it did run into some financial difficulties three years ago. Due to the financial difficulties, Gray Mountain had to obtain additional financing from the bank. As a result, Gray Mountain is subject to additional debt covenants, and the bank requires an audit of its financial statements to be performed Bartholomew realizes that brining in a new client is important to his success in the firm. Gray Mountain looks like a good audit that might provide opportunities to sell other services. Consequently, Bartholomew is thinking about "lowballing" the audit (bidding very low on the audit fees) as an effort to gain a foothold in providing other services to the client. Question 8 (5 points) Describe the five steps that Bartholomew should perform when deciding to accept Gray Mountain as a client? AM Question 9 (10 points) Based on the facts provided in the scenario above, should Bartholomew accept Gray Mountain as a client? Why or why not