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Case 7-25 (New Client Acceptance) Part b

Case 7-25 (New Client Acceptance) Part b
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Solution Guide / Answer Key:

ACCOUNTING

ACC/490 (ACC490)
AUDITING
University of Phoenix (UoP)

Boynton, W. C., & Johnson, R. N. (2006)
Modern Auditing: Assurance Services and the Integrity of Financial Reporting (8th ed.)
Hoboken, NJ: John Wiley & Sons.

Week Three (Week 3) Chapter 5, 6 and 7

Case 7-25 (New Client Acceptance) Part b Comprehensive Case: Mt. Hood Furniture, Inc. Company Background Information: Your employer, Reddy & Abel, LLP, Certified Public Accountants (who is registered with the PCAOB and audits public companies), has been approached by a prospective client, Mt. Hood Furniture, Inc., about your firm taking on their account.

AND SO ON

Required

b. Draft an engagement letter for partner review. You may assume that the fee estimate for
audit services will run between $20,000 and $25,000, and the fee for tax services is estimated
between $7,500 and $10,000. Separate proposals may be presented at a later date
for additional services based on audit findings.

 

FILE: MS WORD

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