Activity [MIDTERM] Case 1 CPAG, CPA is approached by a prospective audit client who wants to engage CPA9 to perform an audit for the current year. In prior years this prospective client was audited by another CPA. Identify the specific procedures that CPA9 should follow in deciding whether to accept this client. Case 2 Juan Dela Cruz has been asked to accept an engagement to audit a small financial institution. Juan Dela Cruz has not been previously audited a financial institution. Required: a. Describe the types of knowledge about the prospective client and its industry that Juan Dela Cruz must obtain to plan the engagement b. Explain how Juan Dela Cruz may obtain this knowledge c. Discuss how this knowledge of the client's business and industry will help Juan Dela Cruz in planning and performing an audit in accordance with auditing standards.

Activity [MIDTERM] Case 1 CPAG, CPA is approached by a prospective audit client who wants to engage CPA9 to perform an audit for the current year. In prior years this prospective client was audited by another CPA. Identify the specific procedures that CPA9 should follow in deciding whether to accept this client. Case 2 Juan Dela Cruz has been asked to accept an engagement to audit a small financial institution. Juan Dela Cruz has not been previously audited a financial institution. Required: a. Describe the types of knowledge about the prospective client and its industry that Juan Dela Cruz must obtain to plan the engagement b. Explain how Juan Dela Cruz may obtain this knowledge c. Discuss how this knowledge of the client's business and industry will help Juan Dela Cruz in planning and performing an audit in accordance with auditing standards.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 69.4C

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