A PA Firm Can Experience High Levels of Business Risk

question 64

Multiple Choice

A PA firm can experience high levels of business risk if the audit firm

• A) does a poor job preparing client risk profiles.
• B) pays its employees wages that are not in line with the market.
• C) experiences significant litigation or has clients that do not pay their bills.
• D) has a generous vacation policy for its staff.

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Definitions:

Organizational

Relating to the structure or functioning of an organization, including its systems, policies, and procedures.

Diverse Team

A group composed of members with varying backgrounds, skills, perspectives, and identities, which can enhance creativity and innovation.

Homogeneous Team

A team comprised of members with similar backgrounds, skills, and perspectives, often leading to uniformity in decision-making and problem-solving approaches.

Innovative Solutions

Creative and effective ways to solve problems or address challenges that are typically novel and unique to specific situations.