Which of the Following Factors Most Likely Would Cause a CPA

question 29

Multiple Choice

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

• A)The prospective client's unwillingness to permit inquiry of its legal counsel.
• B)The inability to review the predecessor auditor's documentation.
• C)The CPA's lack of understanding of the prospective client's operations and industry.
• D)Indications that management has not investigated employees in key positions before hiring them.

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Definitions:

Construction-error Recognition

The process of identifying mistakes made during the building phase of a project, allowing for corrective action to be taken to prevent similar issues in the future.

Construction Errors

Mistakes that occur during the building process, which can affect the project's cost, schedule, or quality.

Résumés

A summary of a person's education, qualifications, and previous experience, typically sent with a job application.

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a particular job, often used for hiring and evaluating performance.