[Anonymous]

Are the two questions below basically asking the same thing but in different words?

Before accepting an engagement to audit a new client, a CPA is required to obtain

A. An assessment of fraud risk factors likely to cause material misstatements.

B. An understanding of the prospective client’s industry and business.

C. The prospective client’s signature to a written engagement letter.

D. The prospective client’s consent to make inquiries of the predecessor, if any.

Answer: D

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 the prospective client’s signature to the engagement letter.

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.

Answer: A

[pkd1982]

Looks like, yes. Both are asking about the necessity to get permission from the prospective client to talk to the predecessor auditor, before accepting the engagement.

REG: Pass
BEC: Pass
AUD: Pass
FAR: August 2013

[Author]

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