Before accepting an engagement to audit a new client, an auditor is required to:
A)make enquiries of the predecessor auditor after obtaining the consent of the prospective client.
B)obtain the prospective client's signature on 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.

Question

Quizplus · Accepted Answer

Before accepting an engagement to audit a new client, the auditor is required to make enquiries of the predecessor auditor after obtaining the consent of the prospective client. This is to gather information about any issues or concerns the predecessor auditor may have had during their audit. It is important for the auditor to consider this information before deciding whether to accept the engagement. Obtaining the prospective client's signature on the engagement letter, preparing a memorandum setting forth the staffing requirements and documenting the preliminary audit plan, and discussing the management representation letter with the prospective client's audit committee are all steps that occur after the auditor has decided to accept the engagement.

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