Question

Before accepting an engagement to audit a new entity, an auditor is required to

A. Make inquiries of the predecessor auditor.
B. Tell the company whether or not the auditor is willing to issue a ""clean"" opinion.
C. Prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan.
D. Become a member of the entity's board of directors.

Answer 1

Before accepting an engagement to audit a new entity, an auditor is required to communicate to the company whether or not they are willing to issue a "clean" opinion.

Step-by-step explanation:

Before accepting an engagement to audit a new entity, an auditor is required to Tell the company whether or not the auditor is willing to issue a "clean" opinion. This means that the auditor must communicate to the company whether they are able to provide a positive, unbiased opinion on the financial statements. This step is important because it establishes the auditor's commitment to integrity and objectivity in the auditing process.