What Should a PA Do If Approached by a Client

question 65

Multiple Choice

What should a PA do if approached by a client where he and his firm lack or do not have access to the technical knowledge required to complete the audit?

• A)subcontract the audit to another firm
• B)indicate that they can do a review engagement,not an audit
• C)decline the new audit engagement
• D)conduct the engagement,but prepare a qualified audit report

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Definitions:

Mushroom

A type of fungus characterized by a cap on a stem, producing spores beneath the cap, and known for a variety of shapes, sizes, and colors.

Extracellular Digestion

The breakdown of food outside cells, typically seen in simple organisms or in certain animal digestive systems.

Decomposers

Organisms, such as fungi and bacteria, that break down dead or decaying organisms, and in doing so carry out the natural process of decomposition.

Multicellular

Organisms composed of more than one cell, with cells differentiated to perform specialized functions, found in most life forms including plants, animals, and fungi.