Last Updated on February 3, 2022 by Admin 3
Explanation: Choice “D” is correct. An auditor must consider the availability and adequacy of the client’s accounting records and the integrity of management in deciding whether or not to accept a new audit engagement. A prospective client that is unwilling to provide all financial records
would give the auditor cause for concern about both of these issues.
Last Updated on February 3, 2022 by Admin 3
Explanation:
What factors most likely cause a CPA to decide not to accept a new audit engagement?Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? The CPA's lack of understanding of the prospective client's internal auditor's computer-assisted audit techniques.
What factor below most likely would cause an auditor not to accept a new audit engagement?Which of the following factors most likely would cause an auditor to decline a new audit engagement? Failure of management to satisfy the preconditions for an audit.
Why would an accountant not accept a new audit engagement?After considering all the threats faced by the audit firm by accepting a new engagement, if some threats cannot be eliminated or reduced to a minimum level, either because the threat is too significant or appropriate safeguards cannot be applied, then the auditor should not accept the new audit and assurance engagement ...
What issues should the auditor consider before accepting the new engagement?Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client's management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or ...
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