An Auditor Who Accepts an Audit Engagement and Does Not

question 24

Multiple Choice

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should:

• A) Engage financial experts familiar with the nature of the business entity.
• B) Obtain a knowledge of matters that relate to the nature of the entity's business.
• C) Refer a substantial portion of the audit to another CPA who will act as the principal auditor.
• D) First inform management that an unqualified opinion cannot be issued.

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Definitions:

Blind

A condition characterized by the lack of visual perception due to physiological or neurological factors, which can range from partial to total inability to see.

Breathing-Related Sleep Disorder

Group of sleep disorders characterized by numerous brief sleep disturbances due to problems breathing.

Apnea

A temporary cessation of breathing, especially during sleep, which can lead to various health complications.

Excessive Sleepiness

A condition where an individual experiences significant and persistent drowsiness despite adequate or even prolonged night-time sleep.