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.

---

Definitions:

Wholesalers

Businesses that buy goods in large quantities from manufacturers and then resell them in smaller quantities to retailers or other businesses.

Personalized Services

Customized offerings tailored to meet the individual preferences and needs of customers, often using data insights.

Profit Margins

The difference between the selling price and the cost of goods sold, expressed as a percentage of the selling price, indicating the profitability of a product or business.

Blockchain

A decentralized, distributed ledger technology that records transactions across many computers in such a way that the registered transactions cannot be altered retroactively.