Client acceptance is an important part of the
pre-engagement planning process for a CPA. For an...
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Accounting
Client acceptance is an important part of thepre-engagement planning process for a CPA. For an existing client,this process often involves reviewing the firm's financialperformance on the previous year's engagement, debriefing with theprior year team regarding any issues working with the client,reviewing public information about the company's activities duringthe year, and considering other factors to determine the relativerisk to the firm to perform services for that client for anotheryear. For a new client to a firm, the client acceptance processshould be a more robust evaluation as a new client brings arelatively unknown level of risk to the firm.
Required:
If you were the audit partner in charge of the newclient acceptance process, what would be the three most importantpieces of information that you would want to review about thatcompany before engaging to perform an audit for the newclient?
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Auditor should focuses on three factors personal integrity of the prospective clients management and principals the integrity of the principal owners key management and those charged with governance of the entity Personal integrity is an essential quality of the management and principals of a prospective audit client The assessment of personal integrity
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