Indicate Whether You Agree or Disagree with the Following Statements

question 15

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) To ensure that it is independent of prospective and continuing clients, an audit firm must review the threats to independence, and make certain that safeguards are put in place to limit or remove those threats.
b) The final stage in the client acceptance and continuance decision process involves assessing independence threats.
c) By signing the engagement letter, management is not necessarily considered to be responsible for the financial statements.
d) To successfully sue an auditor, a plaintiff must only prove that a duty of care was owed by the auditor.

---

Definitions:

Externally Supplied

Refers to goods, services, or resources that are provided by external entities or suppliers outside of the organization.

Sales Forecast

An estimation of the sales revenue a company expects to achieve in a future period under a given set of conditions.

Financial Planning

Financial planning involves evaluating one's current financial status and making strategies to achieve future goals and financial stability.

Prosper

Prosper generally refers to achieving success or flourishing, especially in financial terms or in one's personal development.