Which of the Following Factors Most Likely Would Cause a CPA

question 7

Multiple Choice

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

• A)The CPA's lack of understanding of the prospective client's internal auditor's computer-assisted audit techniques.
• B)Management's disregard of its responsibility to maintain an adequate control environment.
• C)The CPA's inability to determine whether related party transactions were consummated on terms equivalent to arm's-length transactions.
• D)Management's refusal to permit the CPA to perform substantive procedures before the year-end.

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Definitions:

Parthenogenetic

Relating to a form of reproduction in which an embryo is created without fertilization by a male, occurring in some plants, invertebrates, and rarely vertebrates.

Sperm

The male gamete or reproductive cell involved in sexual reproduction.

Nematodes

A phylum of worms also known as roundworms, characterized by elongated, cylindrical bodies, and often found in soil and aquatic habitats.

Insects

A group of arthropods distinguished by having a body divided into three sections (head, thorax, abdomen), three sets of legs, complex eyes, and a single pair of antennae.