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2. What nonfinancial matters should be considered before accepting
Ocean as a client? How important are these issues to the client
acceptance decision? Why?
5. (A). Prepare a memo to the partner making a recommendation as to
whether Barnes and Fischer should or should not accept Ocean
Manufacturing, Inc. as an audit client. Carefully justify your position in
light of the information in the case. Include consideration of reasons
both for and against acceptance and be sure to address both financial and
nonfinancial issues to justify your recommendation.
6. (A). How might the confirmation tendency affect the client
acceptance decision?
6. (B). How might the overconfidence tendency come into play in the
client acceptance decision?
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ACC 546 Individual Assignment Case 5.3 Red Bluff Inn Café
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