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Discuss why it is necessary to go through a comprehensive client acceptance procedure rather than simply accept every client that asks you to do an audit for them. (3pts) As indicated in the case, one of the partners in another office has invested in a venture capital fund that owns shares of Modern Appliances common stock. Would this situation constitute a violation of independence according to the AICPA Code of Professional Conduct? Why or why not? (4pts) Discuss at least three other matters that should be considered before accepting Modern Appliances as a client. In you discussion, clearly explain why they are important and how would potentially affect your acceptance decision. (15pts) Modern Appliances wants Brady and Nunez to aid in developing and improving its IT system. Given current auditor independence rules, will Brady and Nunez be able to help Modern Appliances with its IT system and still provide a financial statement audit? Clearly explain your answer with clear reference to the independence rules. (6pts) Discuss the three most important risk areas that will need to be considered in how the audit is conducted if the Modern Appliances engagement is accepted. For each risk area identified, explain why that area carries risk and also what you would need to do to mitigate that risk, assuming that you decided to accept the client. (15pts) Clearly state whether or not you recommend the acceptance of Modern Appliances as a new audit client. (2pts)