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

question 36

Multiple Choice

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

• A)make enquiries of the predecessor auditor after obtaining the consent of the prospective client.
• B)obtain the prospective client's signature on 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:

Uncertainty Avoidance Index

a measure used in cultural studies to indicate the degree to which a society tolerates uncertainty and ambiguity.

Masculine Culture

A societal or organizational culture that values assertiveness, competition, material success, and achievements, as opposed to more nurturing and relationship-oriented traits.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a disregard for other cultures.

Monochronic

A cultural attitude towards time that emphasizes doing one thing at a time, punctuality, and a linear sense of how time flows.