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

Multiple Choice

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

A) Make inquiries of the predecessor auditor after obtaining the consent of the prospective client.
B) Obtain an understanding of the entity and its environment, including its internal control.
C) Prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan.
D) Discuss the management representation letter with the prospective client's audit committee.