ABC & Associates, an audit firm, has been approached by a prospective company client that has been in business for about 10 years to conduct an…

With regard to the integrity of a client, matters that ABC & Associates should considers include, for example: The identity and business reputation of the client's principal owners, key management, related parties and those charged with its governance.The nature of the client's operations, including its business practices.Information concerning the attitude of the client's principal owners, key management and those charged with its governance towards such matters as aggressive interpretation of accounting standards and the internal control environment.Whether the client is aggressively concerned with maintaining the firm's fees as low as possible.Indications of an inappropriate limitation in the scope of work.Indications that the client might be involved in money laundering or other criminal activities.