Question

Watt & foster llc is a cpa firm that wants to ensure that it only associates with clients whose management has integrity. to achieve this, watt & foster should: establish quality control policies and procedures for accepting and continuing client relationships. communicate with a potential client's predecessor auditor. refuse to accept a client who has been issued an adverse opinion in the last three years.

Answer 1

to achieve this, watt & foster should:
-Establish quality control policies and procedures for accepting and continuing client relationships.
(This is necessary to ensure that in case the client suddenly shows several signs that they're operating on unethical standard, Watt&foster has the full right to Walk away)

-Communicate with a potential client's predecessor auditor
(To do a background check on the client regarding their usual way of practice)