Solve the below problem:
Case (New Client Acceptance) Part b Comprehensive Case: Mt. Hood Furniture, Inc. Company Background Information: Your employer, Reddy & Abel, LLP, Certified Public Accountants (who is registered with the PCAOB and audits public companies), has been approached by a prospective client, Mt. Hood Furniture, Inc., about your firm taking on their account.
Required
Draft an engagement letter for partner review. You may assume that the fee estimate for audit services will run between $20,000 and $25,000, and the fee for tax services is estimated between $7,500 and $10,000. Separate proposals may be presented at a later date for additional services based on audit findings.