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:

Chronological History

A record or account of events or experiences arranged in the order in which they occurred over time.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Family Status

A social category pertaining to the family structure or household arrangement of an individual, such as being single, married, or having children.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving ritual practices and a moral code.