Which of the Following Factors Most Likely Would Cause a CPA

question 130

Multiple Choice

Which of the following factors most likely would cause a CPA to not accept a new audit engagement?

• A) The prospective client has already completed its physical inventory count.
• B) The CPA lacks an understanding of the prospective client's operations and industry.
• C) The CPA is unable to review the predecessor auditor's audit documentation.
• D) The prospective client is unwilling to make all financial records available to the CPA.

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Definitions:

Bad-News Message

A type of corporate communication designed to deliver unfavorable or negative information in a manner that maintains goodwill.

Alternative

An option or choice available in addition to the current situation or proposition.

Rejection

The act of not accepting, approving, or acknowledging someone or something.

Disappointing News

Information received that fails to meet expectations or hopes, often causing sadness or discouragement.