What Should a CPA Do If He/she Concludes a Difference

question 33

Multiple Choice

What should a CPA do if he/she concludes a difference of opinion with an audit supervisor regarding an on-going audit engagement may result in a material misrepresentation of fact or a violation of professional standards?

• A)Quit the job.
• B)Discuss his or her concerns with the supervisor.
• C)Obtain more training.
• D)Search for a certification that focuses on material misrepresentations.

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Definitions:

Marginal Cost

The expenditure required to produce an extra unit of a good or service.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.

Lawn-mowing

The process of cutting the grass in a lawn to maintain its appearance and health.

Variable Costs

Costs that vary directly with the level of production output, such as materials and labor.