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Drexler, Inc., a closely held company, wishes to engage Marco, CPA, to examine its annual financial statements. Drexler was generally pleased with the services provided by its prior CPA, Jetrho, but thought the audit work performed was too detailed and interfered excessively with Drexlers normal office routines. Marco asked Drexler to inform Jetrho of the decision to change auditors buy Drexler did not wish to do so.

Drexler, Inc., a closely held company, wishes to engage Marco, CPA, to examine its annual financial statements. Drexler was generally pleased with the services provided by its prior CPA, Jetrho, but thought the audit work performed was too detailed and interfered excessively with Drexlers normal office routines. Marco asked Drexler to inform Jetrho of the decision to change auditors buy Drexler did not wish to do so. Required: a. List and discuss the steps Marco should follow before accepting the engagement. b. What additional procedures should Marco perform on this first-time engagement over and beyond those Marco would perform on the Drexler engagement of the following year?