Which of the Following Is a Positive Factor Influencing Client

question 94

Multiple Choice

Which of the following is a positive factor influencing client acceptance and retention with respect to special circumstances and unusual risks?

• A)There are minimal regulatory reporting requirements.
• B)There are significant regulatory reporting requirements with close monitoring by regulators.
• C)The client voices significant concerns about the scope of audit work.
• D)The client is experiencing profitability issues, weak cash flows, and is close to violation of debt covenants.

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Co-Operative

An organization owned and operated for the benefit of those using its services, with members sharing control according to democratic principles.

Distinct Legal Entity

This term refers to a business structure that is recognized as separate from its owners, having its own rights and liabilities.

Corporation

A legal entity that is separate and distinct from its owners, recognized by law as having rights and liabilities.