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?