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:

Diagnosed

The identification of a disease or condition by its signs, symptoms, and from the results of various diagnostic procedures.

Hot Flashes

Sudden feelings of warmth, usually most intense over the face, neck, and chest, which can result in sweating and possibly discomfort, often associated with menopause.

Menopausal Symptoms

Physical and emotional changes experienced by women due to declining estrogen levels around midlife.

Japan

An island country located in East Asia, known for its rich culture, technological innovation, and distinctive historical heritage.