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Question - You are having lunch with a member of the board of directors of a prospective client. You have just explained how the audit opinion adds to the confidence of financial statement users by providing reasonable assurance that the financial statements are free of material misstatements. The director then asks what additional benefits the company might attain from the audit and your expertise in the business and industry.

a. How would you respond to the director's questions regarding additional benefits that the company might attain from the audit and how they are communicated?

b. What precautions must the auditor take to ensure that he or she remains independent with respect to the audit engagement when providing value-added-services?

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