For each scenario, identify possible audit engagement acceptance/continuance risk(s)(A?F).Audit engagement acceptance/continuance risk(s):A. Firm?s ability to audit client (scope limitation)B. Firm?s reputation riskC. Non-compliance with ethical standardsD. Additional duty of care/increased legal exposureE. Auditor?s lack of sufficient expertise in relation to the industryF. Integrity of management

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Risk(s) Scenarios SuperService Inc. offers electronics repair service and is required by its bank to have an audit for the first time. The bank has agreed to pro- vide a loan to SuperService Inc if it adheres to the covenant require- ments, which include providing a set of audited financial statements. FastMoney Inc. has just fired its current auditor, citing that it was not happy with the services that it was receiving. FastMoney Inc. is a short-term loan company that has grown rapidly. The company would like your firm to conduct a financial statement audit and assist in relation to acquiring a listing on the Toronto Stock Exchange. Your firm has been approached to conduct a financial statement audit by Xtreme Inc. The company's previous auditor has resigned. Xtreme Inc. is a fireworks manufacturer. You recently read in the news that Xtreme Inc. had to recall its fireworks as some spontaneously exploded and caused serious injuries to a number of people. For a number of years, your firm has been providing internal audit consult- ing service to Big Joe Burger Inc. Big Joe's management approached you to act as the company's external and internal auditor for the next year. Big Joe's non-active investor asked for audited financial statements. Your client is a large international mining company listed on the Toronto Stock Exchange. Your firm has been its group auditor for the last four years. About 90 percent of your client's revenue comes from its foreign mining subsidiaries. During the year, your client purchased a new large mining subsidiary in Brazil. In addition, 50 percent of your client's shares were purchased by Ontario Teachers' Pension Plan.