Before accepting an engagement to audit a new client, a CPA is required to obtain:

Question

Quizplus · Accepted Answer

Choice "D" is correct. Inquiry of the predecessor auditor is a required pre-acceptance procedure. However, consent of the prospective client must be obtained before a CPA can make such inquiries of the predecessor auditor. Choice "A" is incorrect. Obtaining an understanding of the client's industry and business is a planning procedure performed after an engagement is accepted. Choice "B" is incorrect. A management representation letter is not obtained until the end of the audit. Choice "C" is incorrect. Obtaining a preliminary understanding of the client's control environment is an audit procedure (required by the second standard of fieldwork) that would be performed after an engagement is accepted.

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