Prior to accepting a new audit engagement,a public accounting firm should

Question

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A public accounting firm should attempt to contact the predecessor auditors to obtain information about the integrity of the client, any accounting or auditing issues, and the reason for the change of auditors. They should evaluate the integrity of management to assess the risk of fraud or misstatement in financial statements. The firm's resources should be assessed to ensure that they are sufficient to permit them to accept the engagement. Therefore, all of the options mentioned in the question are critical and should be considered thoroughly before accepting a new audit engagement.

Prior to Accepting a New Audit Engagement,a Public Accounting Firm