Question: 10. Before accepting an engagement to audit a new client, a CPA is required to obtain a. An assessment of fraud risk factors likely to

10. Before accepting an engagement to audit a new client, a CPA is required to obtain

a. An assessment of fraud risk factors likely to cause material misstatements.

b. An understanding of the prospective client’s industry and business.

c. The prospective client’s signature to a written engagement letter.

d. The prospective client’s consent to make inquiries of the predecessor, if any.

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