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Instead of a role on the audit committee, assume the role of a partner in a publ

ID: 2404729 • Letter: I

Question

Instead of a role on the audit committee, assume the role of a partner in a public accounting firm that is considering whether or not to propose on a company that recently issues an RFP.

Required:

(a) List the steps the auditing firm should take when deciding whether or not to propose to a potential client company.

(b) List the important considerations of the firm concerning its staff, industry expertise, and potential engagement profitability.

(c) What should the auditor investigate about the company?

Explanation / Answer

(a) List the steps the auditing firm should take when deciding whether or not to propose to a potential client company.

(b) List the important considerations of the firm concerning its staff, industry expertise, and potential engagement profitability.

(c) What should the auditor investigate about the company?

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