Assignment,

Client understanding and acceptance memo partner on the DDI engagement, Nate Braun, would like you to become more familiar with the initial planning of an audit. To further that goal, he has asked you to prepare a memo summarizing your analysis of DDI as a potential client. You should provide your conclusion on whether BEG should accept DDI as a client and support that with your analysis.

You may assume that there are no independence conflicts with DDI or any other requirements, that would prevent BEG from accepting DDI as a client.Mr. Braun would like you to demonstrate your ability to organize your thoughts regarding the accounting guidance for Asset Impairment. You should include a brief summary of the criteria that applies to the topic and a list of information you would need to formulate your opinion.You may also find the AICPA Clarified Standard Section AU-C 210Terms of Engagement helpful to understand the auditor responsibilities with regard to client acceptance.