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:

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Sensation

The process by which sensory receptors and the nervous system receive stimuli from the environment, such as touch, taste, smell, sound, and sight.

Perception

The process by which sensory information is organized, interpreted, and consciously experienced.

20,000 Hz

The frequency of soundwaves that typically represents the upper limit of human hearing.