In assessing management integrity for potential new audit clients, the auditor should examine the prospective client's standing in the business community, financial stability, and relations with its previous CPA firm, among other procedures.

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The auditor should examine a number of factors in assessing the management integrity of potential new audit clients, including their standing in the business community, financial stability, and relationship with previous CPA firms, among other procedures. This is important because management integrity can have a major impact on the accuracy and reliability of a company's financial statements, and ultimately on the auditor's ability to issue an appropriate opinion on those statements. Therefore, the auditor needs to take a careful and thorough approach to assessing management integrity before accepting a new audit engagement.

In Assessing Management Integrity for Potential New Audit Clients, the Auditor