(Solved by Humans)-Your firm has recently been approached by the finance director of an entity which is considering...
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Audit Risk Assessment Your firm has recently been approached by the finance director of an entity which is considering whether it should change its auditors. The finance director heard about your firm from a business associate. The manager who spoke to the finance director has asked you to help him to assess whether the entity would be a suitable client for your firm.(a) Explain the information you would seek to enable you to reach a conclusion as to the suitability of the potential client.(b) Explain the factors you would take into account when assessing the level of risk associated with the potential client before deciding whether to accept it as a client.(c) Summarise the general steps your firm could take to mitigate audit risk on this assignment once the client has been accepted
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This question was answered on: 10 May, 2025
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