When a Potential Client Has Announced Its Intention to "Go

question 64

Multiple Choice

When a potential client has announced its intention to "go public," the auditor's client acceptance decision is likely to depend upon:

• A) the results of background checks performed on individuals in key financial management positions.
• B) whether a formal RFP was used.
• C) whether the predecessor auditor was appropriately independent.
• D) characteristics of the shareholders who will purchase the public shares.

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Definitions:

Hopeless

A feeling or state of despair in which one believes that a situation will not improve or that a desired outcome is unattainable.

Lethargic

A state of sluggishness, fatigue, or lack of energy, often a symptom of various medical conditions or psychological issues.

Major Depressive Disorder

A mental disorder characterized by a pervasive and persistent low mood accompanied by low self-esteem, and by a lack of interest or pleasure in normally enjoyable activities.

DSM-5

Stands for Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, which is a comprehensive classification and diagnostic guide used by mental health professionals.