An established audit firm, 'ABC & Co.', is preparing to commence the statutory audit for its long-standing client, Nitin Handlooms Private Ltd.…

An established audit firm, 'ABC & Co.', is preparing to commence the statutory audit for its long-standing client, Nitin Handlooms Private Ltd. The engagement partner, CA A is overseeing the planning process. Before finalizing the overall audit strategy, he is focusing on the preliminary engagement activities. He needs to ensure that the relationship with the company can be continued, that the engagement team remains independent and that the scope and terms of the engagement are clearly documented and understood by both parties to avoid any future misunderstandings. (i) Identify the three main preliminary engagement activities that CA A and his team must perform as part of the planning process. (ii) Regarding the continuance of the client relationship, list three matters the firm should consider continuing the engagement with the company.