In late spring of \(19 X 4\), you are advised of a new assignment as in-charge accountant of your CPA firm's recurring annual audit of a major client, the Lancer Company. You are given the engagement letter for the audit covering the calendar year December 31, 19X4, and a list of personnel assigned to this engagement. It is your responsibility to plan and supervise the field work for the engagement.

Required:

Discuss the necessary preparation and planning for the Lancer Company annual audit prior to beginning field work at the client's office. In your discussion, include the sources you should consult, the type of information you should seek, the preliminary plans and preparation you should make for the field work, and any actions you should take relative to the staff assigned to the engagement. Do not write an audit program.