QUESTION 3 (20 Marks) An auditor's objective is to be in a position where he/she can form an opinion on whether reports or statements from an audit presents in all respect the position of the organization at a particular point in time. After accepting an audit offer, auditors need to obtain the necessary evidence to form and support his/her evidence. In order to form and support evidence, the auditor goes through an audit process. This audit process is a logical process or task that forms the audit activities and they do so in a sequential manner. It is also a process that is planned and implemented according to audit standards. 3.1 Discuss the following steps in the preliminary stage of the audit process: 3.1.1 Prospective client (5 marks) 3.1.2 Establishing an understanding with the client (5 marks) 3.1.3 Client acceptance or continuance (5 marks) 3.2 Differentiate between the preliminary stage of the audit and the planning stage of the audit. (5 marks)