Final answer:
An audit firm does not assess the background and experience of a potential client's accounting personnel as part of the client acceptance process. This step is not part of the preliminary evaluations which typically focus on financial statement integrity, business failure risk, and audit firm independence.
Step-by-step explanation:
The procedure that is not performed by an audit firm when making a decision to accept a potential client is d. Assess the background and experience of the potential client's accounting personnel. Audit firms typically focus on the integrity of the client's financial statements, the possibility of business failure, and the independence of the audit firm. Although the background of the client's accounting staff might impact internal controls and financial reporting, it is generally not a preliminary procedure that determines accepting a client. Rather, this assessment is more relevant to the planning stages of an audit if the firm has already decided to take on the client.
Other Procedures
Review regulatory filings and inquire about any internal control deficiencies
- Analyze client and industry financial statements for business failure risk
- Inquire about any potential independence-impairing relationships