Before your firm accepts any additional ongoing engagements, for example, new audits, the partners meet to decide on

whether the engagement should be accepted. The firm is mindful of the requirements to conduct preliminary engagement activities including, compliance with ISA $220$ Quality Management for an Audit of Financial Information. The following prospective audit clients are being evaluated. Your firm has seven partners and a diverse portfolio of clients ranging from small business entities to medium$-$sized companies. None of its existing audit clients is a listed company.

Stonebridge $($Pty$)$ Ltd is a small company owned by Harry Jack, the father of one of your firm$$s partners.

Harry Jack believes that having the company audited externally adds to its credibility when negotiating with prospective business partners.