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

question 265

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 an understanding of the entity and its environment, including its internal control.
• 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.