In Accepting a Client,auditing Standards Suggest That the Auditor Focus

question 66

Multiple Choice

In accepting a client,auditing standards suggest that the auditor focus on four questions.Which of the following is not one of those four required questions of the predecessor?

• A)Integrity of management.
• B)The strength of the client's internal control.
• C)Disagreements with management as to accounting principles,auditing standards,or other similarly significant matters.
• D)Any communications by the predecessor to the client's management or audit committee concerning fraud,illegal acts by the client,and matters related to internal control.

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Definitions:

World Price

The price of a good or service in the international marketplace, influenced by the global dynamics of supply and demand.

Import Quota

A government-imposed limit on the quantity of a particular good that can be imported into a country.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied, resulting in a stable market condition.

Import Competition

The competition that domestic firms encounter from the products and services of foreign producers.