Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are a new staff member of PA firm Winchester and Churchill, LLP a mid-sized accounting firm. Recently, you were assigned to Jacqueline Petersen, an

You are a new staff member of PA firm Winchester and Churchill, LLP a mid-sized accounting firm. Recently, you were assigned to Jacqueline Petersen, an audit partner. She asked you to complete a preliminary assessment on a potential client and provide a memorandum summarizing your research and a recommendation on the actions the firm should take concerning the potential client.

As you are playing the role of the new PA, this will be part of your research using your own perception of the profile of the potential client, key executives and governing body of the target company, and the current auditor. You have the option to model either a scenario of accepting or rejecting a prospective client, but not both.

Requirements:

Part A – What factors should you as an auditor consider prior to accepting an engagement? Explain.

Part B – List the pre-acceptance procedures and pre-acceptance evaluation that you would perform in assessing the prospective client. Provide an example of audit evidence for each step.

Part C – Whether your recommendation is to accept or reject the engagement of the potential client, identify, and describe at least two of your points in the information to highlight the impact on your professional judgment.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Part A Before accepting the client investigation about the client should be done by the auditor The auditor should evaluate the standing of the client in the business community relation with the previ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 1 attachment)

Word file Icon
60ae2cf6040fd_70817.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Horngren, Harrison, Oliver

3rd Edition

978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978

More Books

Students also viewed these Corporate Finance questions

Question

What is what-if analysis?

Answered: 1 week ago