Drexel Keystone Acceptance as A New Client and Performance of Preliminary Analytical Procedures Memo.
Prepare a memo to the file for the Keystone Indemnity Company, from you (staff accountant) with copies to the partner and manager on the engagement.
Explain the procedures performed, inquiries made and documents examined to determine whether your firm (Arens and Company CPAs) will accept Keystone as a new client. Your decision was to accept the new client so your explanation should support an acceptance decision.
Discuss the importance of performing preliminary analytical procedures. Why do we perform them? What documentation will we want to acquire and what procedures will we perform on that documentation? Keystone is a private company so how will we acquire the documentation?
Take care in preparing this memo. Follow the instructions and answer all of the questions. Make sure the memo is appropriately formatted and has an introduction and conclusion.