2-20 (Objectives 2-2, )

2-20 (Objectives 2-2, 2-3, 2-6) The Howard Mobile Home Manufacturing Company is audited by Olson and Riley, CPAs. Howard Mobile Home has decided to issue stock to the public and wants Olson and Riley to perform all the audit work necessary to satisfy the requirements for filing with the SEC. Olson and Riley has never had a client go public before.

Required

  a. What factors should Olson and Riley consider before accepting the engagement?
  b. List additional issues confronting auditors of companies that file with the SEC as compared to dealing with a private company audit client.

 
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