Evaluating a prospective client requires the following step(s):
A) Communicate with the SEC.
B) Preplan the audit.
C) Determine if the firm is independent of the client.
D) Communicate with the AICPA.

Question

Quizplus · Accepted Answer

Evaluating a prospective client requires determining if the firm is independent of the client. This is a fundamental requirement for audit engagements and is necessary to ensure that the auditor maintains a level of objectivity and impartiality while performing the audit. While communicating with the SEC and AICPA may be a part of the overall audit process, they are not necessary steps for evaluating a prospective client. Preplanning the audit also occurs after the decision has been made to accept the engagement, so it is not relevant to this question.

Evaluating a Prospective Client Requires the Following Step(s)