Question: Proulx Inc. is a medium-size company that is developing solar energy systems for private residences and small businesses. It is privately owned, with the majority

Proulx Inc. is a medium-size company that is developing solar energy systems for private residences and small businesses. It is privately owned, with the majority of the shares held by the company's president, Shu Mingfei. Started up to years ago, to date, it is mostly involved in research and development, but this year it completed its first customer sales and installation. Shu has engaged your firm to do the current year's audit because she plans to obtain $20 million in debt financing from outside investors to allow further commercialization of the ESI systems. Required: a. Identify three factors that your firm should consider before agreeing to conduct the audit. (6 marks)b. What economic and industry risks are affecting this business? How would these risks affect the company's financial statements and your overall audit strategy? (6 marks)c. In your own words explain materiality? Why is materiality judgement is one of the first important decisions your team must make in planning this audit. (6 marks)

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