Safeguards necessary to eliminate or reduce threats associated with accepting new engagements may include:

1. Acquiring an appropriate understanding of the nature of the client’s business:
   Understanding the complexity of its operations, specific requirements of the engagement, and the purpose, nature, and scope of the work to be performed.
2. Acquiring knowledge of relevant industries or subject matters:
   This ensures that the accountant has the necessary expertise to handle the specific needs of the client.
3. Possessing or obtaining experience with relevant regulatory or reporting requirements:
   Ensuring familiarity with all the necessary regulations and reporting standards applicable to the client.
4. Assigning sufficient staff with the necessary competencies:
   Ensuring that the engagement team has the appropriate skills and experience to carry out the work effectively.
5. Using experts where necessary:
   Engaging specialists or experts to provide additional knowledge and support where the accountant’s own expertise may be lacking.
6. Agreeing on a realistic time frame for the performance of the engagement:
   Ensuring that there is adequate time to perform the engagement thoroughly without compromising quality.
7. Complying with quality control policies and procedures:
   Implementing policies and procedures designed to provide reasonable assurance that specific engagements are accepted only when they can be performed competently.

(5 points for 5 marks)