Which of the Following Situations Would Cause a CPA to not

question 77

Multiple Choice

Which of the following situations would cause a CPA to not accept a new audit engagement?

• A)The prospective client has fired its prior auditor.
• B)The CPA lacks a thorough understanding of the prospective client's operations and industry.
• C)The CPA is unable to review the predecessor auditor's working papers due to a major fire that destroyed both hard and soft copy documentation.
• D)The prospective client is unwilling to make financial records available to the CPA.

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Definitions:

Preconventional Stage

A developmental phase in Kohlberg's theory of moral development where moral reasoning is based primarily on the consequences of actions and on rewards and punishments.

Formal Operational Stage

The final stage of Piaget's theory of cognitive development, where individuals develop the ability to think abstractly, logically, and systematically.

Self-Concept

an individual's understanding of themselves, including their beliefs, feelings, and thoughts about their own identity, abilities, and worth.

Self-Esteem

A person's overall subjective sense of personal worth or value, how much a person appreciates, likes, or approves of themselves.