Question: You are considering taking a new audit client. The prospective audit client is a fast growing specialty shoe store named Dynamic Footwear. The company sells
You are considering taking a new audit client. The prospective audit client is a fast growing specialty shoe store named Dynamic Footwear. The company sells expensive footwear in their stores and online. The following three issues relate to this prospective client: A The company is being financed by its wealthy owner. The owner needs audited financial statements to attract investors. B Dynamic is a fast growing company, but it has not been very profitable. In the current year the company has posted a small profit, but the owner seems very upbeat about the future prospects of the business Your CPA firm has a lot of expenence auditing retail businesses, but your firm has has never audited online business. Required: Explain how each of the three issues (A,B,C) may impact your decision to accept Dynamic Footwear as a new client. Use complete sentences II Assume there are no other issues. Would you take Dynamic Footwear as a new client? Explain your answer. Use complete sentences
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