Demonstrate knowledge of the current tax and auditing , Auditing

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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

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