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

question 16

Multiple Choice

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

• A) Make inquiries of the predecessor auditor.
• B) Tell the client 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 client's board of directors.

---

Definitions:

Property Tax

A levy on property that the owner is required to pay, usually collected by local government.

Assessed Value

The dollar value assigned to a property for purposes of measuring applicable taxes.

Property Tax

A levy imposed by a government on a property owner, based on the value of the property.

Mill Rate

The amount of property tax per $1000 value.