An Auditor Who Accepts an Audit Engagement and Does Not

question 58

Multiple Choice

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity should:

• A)engage financial experts familiar with the nature of the business entity.
• B)obtain a knowledge of matters that relate to the nature of the entity's business.
• C)refer a substantial portion of the audit to another CPA who will act as the principal auditor.
• D)first inform management that an unqualified opinion cannot be issued.

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Definitions:

Premise

A prior assertion or claim from which another conclusion is drawn or follows logically.

Simp

Slang for someone who demonstrates excessive sympathy or attention towards another person, often without reciprocation.

Taut

An assertion that holds truth as a result of its inherent logic or by necessity.

MP

An abbreviation for Member of Parliament, an individual elected to serve in the legislative body of a country.