The Factor That Influences Client Acceptance and Retention Decisions with Respect

question 78

Multiple Choice

The factor that influences client acceptance and retention decisions with respect to whether the accounting firm has the expertise to perform the services requested by the client is known as:

• A)competence issues.
• B)independence issues.
• C)integrity of management.
• D)special circumstances and unusual risk.

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Definitions:

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants for machinery.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Standard Costing System

A cost accounting system that assigns expected costs to products to help managers monitor and control actual costs.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.