Question 1:
Your CPA firm is trying to determine on whether to accept a new audit client. Where would you look to find information on this client?
Question 2:
Your CPA firm is investigating a company to determine its acceptability as a client. You have initiated contact with the predecessor auditor of the potential client.

What information would you try to obtain from the predecessor auditor?
Question 3:
Your firm is looking at a potential client. What would be your concerns regarding an obscure or a very complex organizational structure?
Question 4:
You are investigating a company to determine its acceptability as a new audit client. You learn that the accounting staff at this entity is “overworked”. What concerns,

if any, would this raise?
What about if you learn that this potential client has a high turnover rate of employees in top accounting positions?
Question 5:
You are a partner at a midsize audit firm. One of your clients has been very successful for the last several years and wants to go public with an IPO. Does this

situation create more risk for your firm? What would you do to assess if your firm is positioned to accept the risk?