Before accepting an engagement to audit a new client, a CPA is required to obtain:
A)an understanding of the prospective client's industry and business.
B)the prospective client's signature on the engagement letter.
C)a preliminary understanding of the prospective client's control environment.
D)the prospective client's consent to make inquiries of the predecessor auditor.

Question

Quizplus · Accepted Answer

Before accepting an engagement to audit a new client, a CPA is required to obtain the prospective client's consent to make inquiries of the predecessor auditor. This is a standard procedure to understand any issues the previous auditor may have encountered, which could influence the decision to accept the engagement.

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