i) Factors a professional accountant in public practice should consider before accepting a new audit client:

1. Integrity of Management:
   The accountant should assess whether the management of the potential client has integrity. If there are any doubts about the honesty or ethical behavior of the management team, it could compromise the auditor’s independence and objectivity.
2. Firm’s Capability and Resources:
   The audit firm must determine whether it has the necessary expertise, resources, and time to properly carry out the engagement. This includes ensuring that the team has the relevant industry knowledge and experience.
   (5 marks)

ii) Preconditions that should exist when agreeing to the Terms of Audit Engagement:

1. Acceptable Financial Reporting Framework:
   The auditor must determine whether the financial reporting framework used by the client for preparing the financial statements is appropriate, ensuring that it complies with relevant standards (e.g., IFRS, GAAP).
2. Management’s Acknowledgement of Responsibility:
   The auditor must obtain agreement from management that they acknowledge their responsibility for the preparation of the financial statements and for providing the auditor with all necessary access to information and documentation.
   (5 marks)