Provide three procedures that Cohen and Dylan perform

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Question - Cohen and Dylan, CPAs, a national CPA firm, has been approached by Hanson Industries Inc. (HII) about becoming its auditor. HII is privately owned by three brothers: Jack, Steve and Jeff Hanson. HII is involved in making reinforced glasses for use by athletes in contact sports. While the product is of good quality and has been well-received, there are a couple of outstanding claims by customers who suffered minor injuries when the glasses broke under extreme conditions. Jack, Steve and Jeff have reputations for being very tough in their business dealings and are looking to change auditors in preparation for an initial public offering planned for the next year to raise funds to expand operations. HII's previous auditor was a smaller, local firm, and Jack mentioned that the three brothers felt that they did receive enough value for the amount of the audit fee. As part of their acceptance procedures, Cohen and Dylan, CPAs must assess the integrity of management and principal owners. Required:

Required -

a) Discuss what matters Cohen and Dylan, CPAs should consider in assessing HII's integrity.

b) Provide three procedures that Cohen and Dylan, CPAs should perform to assess HII's integrity.

Reference no: EM132628058

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