Which of the Following Factors Most Likely Would Cause a CPA

question 960

Multiple Choice

Which of the following factors most likely would cause a CPA to decline to accept a new audit engagement?

• A) The CPA does not understand the entity's operations and industry.
• B) Management acknowledges that the entity has had recurring operating losses.
• C) The CPA is unable to review the predecessor auditor's working papers.
• D) Management is unwilling to permit inquiry of its legal counsel.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision to pursue a certain action.

Trade Agreements Act

Legislation aimed at fostering fair and open international trade by implementing tariff concessions and other trade-related provisions.

Dumping

The practice of exporting goods at a price lower than their normal value, often with the intention of undermining local markets or competitors.

General Agreement on Tariffs and Trade

An international treaty that was aimed at reducing tariffs and other trade barriers to promote international trade; it was the precursor to the WTO.