The Initial Phase of a Financial Statement Audit Involves the Acceptance

question 32

Multiple Choice

The initial phase of a financial statement audit involves the acceptance decision for the client in question.Which of the following is not a consideration during this phase of the audit?

• A)Determining the existence of related parties.
• B)Preparation of the engagement letter.
• C)Ethical considerations.
• D)Client evaluation.

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Definitions:

Shared Leadership

A contemporary theory of leadership that recognizes the leadership capabilities of each member in a professional group and assumes that appropriate leadership will emerge in relation to the challenges that confront the group.

Health Care Team

A group of professionals from various disciplines who collaborate to provide comprehensive care to patients.

Informal Leader

An individual selected by the group as its leader because of seniority, age, special abilities, or charisma.

Job Descriptions

Detailed listings of the duties, responsibilities, required qualifications, and reporting relationships of a particular job.