Please consider using sources from higher Authority such as AICPA “American Institute of Certified Public Accounts” 

Read the case and the requirements carefully.

REQUIRED

Decide whether you will recommend to the partners to accept or decline the CCC engagement. Using all of your research, write a memo to Rebecca Hunter outlining your recommendation for either accepting or declining CCC as an audit client.

Your memo should be a maximum of five pages, double-spaced, Times new Roman 12-point font. Your reference page may make you go over the 5 pages—that is fine.

Before writing your memo consider the following.

• Consider what the state boards of accountancy in Colorado, Wyoming, and Nebraska say (if anything) about accepting a client in the marijuana or cannabis industry.
• Consider guidance provided by the AICPA (if any) regarding clients in the marijuana industry.
• Consider the possible audit risks from auditing an all-cash business such as CCC.
• Consider the fact that Clark has not been completely honest with his bank about the nature of his business, and that CCC is telling the IRS that all of its salaries, rent expense, etc. relate to the ancillary business (and not to the selling of marijuana).
• Consider that this would represent an opportunity for your firm to enter a growing market in Colorado.