You are an audit manager at a large public accounting firm. Your audit partner approaches you with a request for proposal (RFP) from a potential client looking for a firm to audit their annual financial statements. Your sister-in-law is the chief financial officer of the company requesting the proposal and oversees most of the audit work. She is also involved in the general audits for the company. Your partner asks that you review the engagement acceptance checklist provided and write a memo on whether or not your firm can accept this engagement. Directions Using the information provided in the Client Profile Summary linked in the Supporting Materials section, write a memo to the audit partner explaining whether the firm should accept the engagement. Specifically, you must address the following rubric criteria: Provide rationale for which professional ethics code covers this situation over others. 

Describe the safeguards in place that reduce threats to independence. 

Explain actual versus perceived independence violations. Recommend whether to accept the client engagement.

Answer rating: 100% (QA)

Your Name Date Audit Partners Name Audit Partners Position Large Public Accounting Firms Name Subject Evaluation of Acceptance of Client Engagement Dear Audit Partners Name I am writing to provide you ... View the full answer