The CPA firm of Gleim & Co. has been approached by the following potential clients:

a. Columbus Entertainment Inc., which recently made news in the financial press when its board of directors reinstated the chief executive officer who had misap- propriated corporate checks totaling $15,000 (an amount that was immaterial to Columbus and the CEO's annual salary). The board said the CEO was essential to operations and that his theft was the result of mental problems rather than a sign of dishonesty. 

b. Harridan Press Enterprises, Inc., which publishes a magazine for women that features explicit male nudes and operates clubs around the country that feature male go-go dancers. 

c. Lansker Inc., which operates vending machines in several East Coast states and has part interest in a gaming casino in Las Vegas. 

1. What procedures would Gleim & Co. use to investigate these three potential clients? (Would any unusual procedures be applicable to any of the three?) 

2. Explain the considerations of Gleim & Co. in deciding whether to accept each of the three companies.