In late spring, your supervisor assigns you to be the in-charge accountant of your CPA firm's recurring annual audit of a major client, the Lily Company. You are given the engagement letter for the audit covering the current calendar year and a list of personnel assigned to this engagement. It is your responsibility to plan and supervise the fieldwork for the engagement.

Discuss the necessary preparation and planning for the Lily Company annual audit before beginning fieldwork at the client's office. In your discussion, include the sources you should consult, the type of information you should seek, the preliminary plans and preparation you should make for the fieldwork, and any actions you should take relative to the staff assigned to the engagement.