Before Accepting an Engagement to Audit a New Client, an Auditor

question 52

Multiple Choice

Before accepting an engagement to audit a new client, an auditor is required to:

• A)make inquiries of the predecessor auditor after obtaining the consent of the prospective client.
• B)obtain the prospective client's signature to the engagement letter.
• C)prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan.
• D)discuss the management representation letter with the prospective client's audit committee.

---

Definitions:

Lactam Monomers

The monomeric units that can polymerize to form polyamides, where the repeating units contain a lactam ring.

Polyamides

Synthetic polymers made by the linkage of amino acids or by the polymerization of monomers with amide bonds, used in textiles and plastics.

Polymer

Large molecules made up of repeating structural units known as monomers.

Phosgene

A highly toxic and reactive compound with the formula COCl2, used as a chemical intermediate in the production of pharmaceuticals and pesticides.