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

question 48

Multiple Choice

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

• A)make inquiries of the predecessor auditor.
• B)tell the company whether or not the auditor is willing to issue a "clean" opinion.
• C)prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan.
• D)become a member of the entity's board of directors.

---

Definitions:

Employment

The condition of having paid work or the relationship between an employer and an employee.

Tax Laws

Regulations governing the taxation of income, property, goods, services, and estates.

Home Ownership

The state or process of owning a house or an apartment; often seen as a key component of the American Dream.

Migrated

The process by which individuals or groups move from one location to another, often for reasons such as seeking better living conditions or employment opportunities.