Question
Brella and Co, a medium sized audit firm has recently undergone a practice review. Due to certain negative aspects in the review relating to the
Brella and Co, a medium sized audit firm has recently undergone a practice review. Due to certain negative aspects in the review relating to the taking on of new clients, the senior partner has asked you to draft a memorandum to the managers and partners pertaining to preliminary engagement procedures. He requires that you provide them with some guidance on what they should be looking for when evaluating: x The integrity of the prospective clients principal owners and key management x The firms ability to perform the engagement competently, and x Whether the firm can satisfy the ethical requirements of the engagement He also asked you to give an indication as to the procedures which can be adopted to gather such information about a prospective client. Required:
Draft the required memorandum dealing only with the matters requested, (your answer must include how information about a prospective client can be obtained).
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