The acceptance of a new client is essential to a CPAs pre-engagement planning process. The auditor will review the company’s financial performance from the previous year, interview previous team to uncover any issues working with the client, review the company’s public information throughout the year, and contemplate other factors to calculate the relative risk to perform services this year. The client acceptance process should consist of more thorough evaluations for a new client as they bring a new level of risk to the firm and less is known about them in comparison with existing clients.
What would be three essential items that you would want to discover about that company before engaging to conduct an audit for a new client? Why are these the most important? How would you explain the need of this information to your potential client? Address this situation as if you are the audit partner in charge of evaluating new clients.
Your document should be 350-500 words. Please use appropiate references.
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