Which of the Following Factors Most Likely Would Cause a CPA

question 63

Multiple Choice

Which of the following factors most likely would cause a CPA to not accept a new audit engagement?

• A) The prospective client has fired its prior auditor.
• B) The CPA lacks a thorough understanding of the prospective client's operations and industry.
• C) The CPA is unable to review the predecessor auditor's working papers due to a major fire that destroyed both hard and soft copy documentation.
• D) The prospective client is unwilling to make financial records available to the CPA.

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Definitions:

Electrical Signals

Impulses used for communication within organisms, particularly in the nervous system and muscles.

Stereotypic Thoughts

Simplified and generalized beliefs about a group of people that often underlie prejudiced attitudes.

Negative Outcomes

Refers to results or consequences that are undesirable, harmful, or counter to what is intended or expected.

Self-esteem

An individual's subjective evaluation or perception of their own worth, value, or competence.