A municipal village or a nonprofit organization solicits bids for the annual audit from local audit firms, and the firm with the lowest bid is selected.
Answer the following questions regarding the given scenario:
- Is this the most prudent choice of auditor for the organization?
- What should the managers take into consideration when attempting to identify a suitable audit firm?
- Demonstrate knowledge of the current tax, auditing and accounting issues that concern governmental and not-for-profit entities