Which of the Following Statements Is True Regarding Client Acceptance

question 28

Multiple Choice

Which of the following statements is true regarding client acceptance or continuance decisions?

• A)An audit firm cannot discontinue providing audit services to a client without just cause.
• B)Potential audit fees are not a valid consideration in the acceptance or continuance decision.
• C)The client acceptance/continuance decision is one of the most important factors in audit quality.
• D)Audit firms are not permitted to conduct background checks on the management of a potential client.

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Definitions:

Relationship Costs

The negative aspects, sacrifices, or expenditures (emotional, time, effort) involved in maintaining a relationship.

Same-Sex Couples

Romantic partnerships between two individuals of the same gender or sexual orientation.

Romantic Love Ideal

The culturally constructed notion of love driven by emotional and physical attraction, often idealizing passion and companionship.

Proximity

The nearness in space, time, or relationship, influencing various phenomena such as attraction and interaction.