Question
Buzzacco and Associates is a new regional accounting firm in the Northeast Ohio area. The firm has clients in multiple industries, which include manufacturing, insurance,
Buzzacco and Associates is a new regional accounting firm in the Northeast Ohio area. The firm has clients in multiple industries, which include manufacturing, insurance, and financial services. The firm needs to determine whether it wants to accept a new client, Rose Photography. Rose Photography is currently a privately held company operating 24 studios in Ohio, Indiana, Pennsylvania and Michigan. The Company's management is planning an Initial Public Offering in the near future, and the Company has been audited by a small local firm the past 2 years. Rose Photography's IT systems have been used for the past 5 years, but are very complex. The firm has an internal audit function that has been operating for the past 6 months. Describe 3 specific risks that the accounting firm should consider related to accepting this client. (In the description, explain why the identified item creates risk for the audit firm)
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