Which of the following tasks is important to perform before planning the engagement?

Understanding why the engagement is being conducted is crucial as it sets the foundation for the entire audit process. When auditors grasp the purpose behind the engagement, they can tailor their approach accordingly and focus their efforts on areas of greatest relevance and concern to the stakeholders involved. This knowledge helps to clarify the objectives, which ultimately informs the scope, methodology, and resource allocation of the audit.

Moreover, knowing the intent behind the engagement allows auditors to align their objectives with the organization's goals and expectations, which is vital for ensuring that the audit will yield meaningful insights and recommendations. This understanding can also facilitate communication with the client and ensure that the audit team is focused on providing value.

While identifying potential audit risks, gathering client financial statements, and hiring additional audit staff are all important tasks that may follow, they hinge on the foundation established by first understanding the purpose of the engagement. Without that clarity, any subsequent planning and execution may lack direction and focus.