Milestone One Guidelines and Rubric
Prompt: Evaluate the corporate structure of EarthWear Clothiers and their annual report and then summarize your findings. Evaluate the following for your auditing firm, Willis & Adams: independence, knowledge of client industry, and staffing capabilities. Then, assuming that your firm has decided to move forward as a result of your evaluation of internal and external factors, you will explain why it would be appropriate for your firm to accept EarthWear Clothiers audit request, using examples to support your response.
Specifically, the following critical elements must be addressed:
I. Client Engagement: The external auditing team has been approached by a client to do their yearly audit. You are responsible for evaluating the factors associated with the organization and the external auditing team to determine why it would be appropriate to move forward with the client request.
A. Evaluate the corporate structure and annual report of the organization and summarize your findings.
B. Evaluate the following information related to the external auditing firm, and summarize your findings:
1. Independence
2. Knowledge of client industry
3. Staffing capabilities
C. Assume your firm has decided to move forward. Referring to your evaluation of internal and external factors, explain why it would be appropriate for the external auditing team to accept the client audit request, using examples to support your response.
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