A CPA Firm Knows That Clients Find It Difficult to Change

question 24

Multiple Choice

A CPA firm knows that clients find it difficult to change auditors after a professional relationship has been in place for several years because the termination of an auditor often makes investors concerned about the trustworthiness of a company's financial statements.To take advantage of this fact,this CPA firm routinely bids on new audit engagements at a fee that is likely to be 25 percent lower than the fees bid by its competitors.The CPA firm plans to recoup this fee differential by steadily raising its fees to above-market rates in subsequent years.The CPA firm's policy creates:

• A) A current conflict of interest
• B) A foreseeable future conflict of interest
• C) An appearance of a conflict of interest, but not an actual one
• D) No conflict of interest

Learn how to differentiate and evaluate new arguments in discussions.

Comprehend the nature of ideological reasoning and its reliance on faith-based absolutes.

Understand why arguments based on religious or political ideologies often meet the Test of Relevance.

Learn the evaluation of premises assumed to be self-evident without support.

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Definitions:

Persuasive

Having the power, skill, or ability to convince others to accept one's view, belief, or course of action.

Competent Leaders

Individuals who possess the necessary skills, knowledge, and attitudes to effectively guide and direct groups or organizations towards achieving their goals.

Unconscious Forces

Psychological drives or instincts that lie beyond conscious awareness but influence thoughts, feelings, and behaviors.

Cognitive Psychology

A branch of psychology focused on studying mental processes such as perception, memory, thought, and problem-solving.