Reference no: EM132475732

Problem 1: Create a memo to the partner of Barnes and Fischer supporting a decision as to whether to accept Ocean Manufacturing, Inc. as an audit client. use the client acceptance factors described in AU-C 220.A7 (supplemented with QC 10.27-.32, and AU-C 210.A31) for recommendations. The memorandum should contain the following:

Point 1: A summary of the key client acceptance factors provided in professional standards

Point 2: Supporting professional standards reference for each identified client acceptance factor

Point 3: Facts from the case aligned with each factor

Point 4: Your overall client acceptance decision and how the facts support your ultimate decision (include consideration of reasons both for and against acceptance).

Problem 2: prepare an additional memorandum answering the following question: regardless of how you concluded in your first memorandum, assume you decided to accept the client; explain how you would mitigate each of your identified risks to justify your acceptance decision. This memorandum only needs to include the identified risks and applicable mitigation actions, do not repeat all the information provided in the first memorandum.