Which of the Following Factors Most Likely Would Cause a CPA

question 63

Multiple Choice

Which of the following factors most likely 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:

Forbes List

An annual ranking published by Forbes magazine that lists the wealthiest individuals, companies, or other entities in various categories.

Wealthiest People

Individuals with the highest net worth globally, often cited in lists such as Forbes, representing significant economic power and influence.

$100 Billion

A monetary figure signifying a hundred billion dollars, often used to denote significant economic value or financial transactions.

Urban Underclass

A grouping of people, largely minority and poor, who live at the absolute bottom of the socioeconomic ladder in urban areas.