Where the Fees from an Audit Client Are More Than

question 4

Multiple Choice

Where the fees from an audit client are more than 15% of total fees, the public accounting firm should:

• A) ensure that adequate quality control procedures are in place.
• B) ensure that the audit work is reviewed by an accountant, not a member of the audit team.
• C) ensure that all members of the audit team are independent, both in fact and in appearance.
• D) ensure adequate quality control procedures are in place and that the audit work is reviewed by an accountant, not a member of the audit team.

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Definitions:

Sales Presentation

A promotional speech or demonstration aimed at convincing a potential buyer to purchase a product or service.

Open-ended Questions

Queries that cannot be answered with a simple "yes" or "no," encouraging expansive and informative responses.

Conviction Stage

In sales, this is the point at which a prospective buyer becomes convinced of the product or service's value and moves closer to making a purchase.

Nonverbal Signal

A form of communication without words, such as body language, gestures, and facial expressions, conveying messages.