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)

Note: Supplementary Assignment Total Marks available 35 Marks Instructions: 1. Assignment is due on Monday June 3rd at 11:59 pm. Please email the completed assignment to Melissa Dodge m..e@cambriancollege.ca 2. No late submissions will be excepted and there will be no extension provided. Note: Plagiarism and/or cheating will not be tolerated. Any plagiarism and/or cheating, including the use of AI identified will be given a grade of ZERO on the assignment and Cambrian College Academic Integrity policy will come into effect. This is an individual project and therefore collaboration with other class members is prohibited and if identified will be given a grade of ZERO on the assignment and Cambrian College Academic Integrity policy will come into effect