Chapter $03$ Exercise $51$ LO $3-1$

Assume that Smith & Smith, CPAs, audited Apollo Shoes Incorporated, last year. Now CEO Larry Lancaster wishes to engage Anderson, Olds, and Watershed, CPAs $($AOW$)$ to audit its annual financial statements. Lancaster is generally pleased with the services provided by Smith & Smith, but he thinks the audit work was too detailed and interfered excessively with normal office routines. AOW has asked Lancaster to inform Smith & Smith of the decision to change auditors, but he does not wish to do so$.$

Required:

Put in order the steps AOW should follow with regard to dealing with a predecessor auditor and a new client before accepting the engagement.