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

question 601

Multiple Choice

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

• A) An understanding of the prospective client's industry and business.
• B) The prospective client's signature to the representation letter.
• C) A preliminary understanding of the prospective client's control environment.
• D) The prospective client's consent to make inquiries of the predecessor auditor, if any.

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