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

question 128

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.

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Definitions:

Behavioral Problems

Actions or patterns of behavior that are disruptive or harmful to oneself or others, often necessitating intervention or support.

Individual Distress

Personal suffering or strain experienced by an individual, which can manifest as emotional, physical, or psychological discomfort.

Psychoanalytic Approach

A psychological perspective focusing on unconscious mental processes and childhood experiences in shaping personalities and behaviors.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.