The partners of Mayfair CPAs are meeting to discuss the upcoming audit of an ongoing, major audit client. The client has recently replaced some key executive positions, as due to an economic downturn, demand has slackened and profitability issues are becoming a concern. Based on this information, what would be the audit firms' best course of action?

Advise the client that Mayfair CPAs will assist the client in locating a new auditor, and proceed with disclaim an audit opinion.

O Advise the client that because of the increased inherent risk associated with high management turnover and weak demand,

the audit firm will no longer be able to perform attestation services.

• Consider performing the audit, but consider focusing audit time and resources on areas such as revenue that may now have a higher risk of material misstatement.
• Perform the audit as normal, and request written assurances from both top management and the internal audit function relating to areas of higher audit risk.

The partners of Mayfair CPAs are meeting to discuss the upcoming audit of an ongoing. major audit client. The client has recently replaced some key executive positions, as due to an economic downturn, demand has slackened and profitability issues are becoming a concern. Based on this information, what would be the audit firms' best course of action? Advise the client that Mayfair CPAs will assist the client in locating a new auditor, and proceed with disclaim an audit opinion. Advise the client that because of the increased inherent risk associated with high management turnover and weak demand, the audit firm will no longer be able to perform attestation services. Consider performing the audit, but consider focusing audit time and resources on areas such as revenue that may now have a higher risk of material misstatement. Perform the audit as normal, and request written assurances from both top management and the internal audit function relating to areas of higher audit risk