Response to the following problem:
Assume that your firm is considering accepting NewSkin Pharma as a new audit client. NewSkin is a start-up biotech firm that has publicly traded stock on NASDAQ. Your audit partner has asked you to perform some preliminary work for the firm's client acceptance process.
Required:
a. Prepare a list of business risks that NewSkin likely will face as a start-up biotech firm.
b. Choose two of these risks and consider how they might affect your decision to accept NewSkin as a client.