An Auditor Who Accepts an Audit Engagement and Does Not

question 39

Multiple Choice

An auditor who accepts an audit engagement and does not possess expertise with respect to the business entity's industry,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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