Defensive Auditing Includes All of the Following Except

question 58

Multiple Choice

Defensive auditing includes all of the following except

• A)clarifying the nature of the arrangement through the use of a written engagement letter.
• B)knowing when your client is about to fire your firm before hand.
• C)carefully selecting which clients to accept and retain.
• D)evaluation of a firm's capacity to adequately perform services for a specific client.

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Definitions:

Governmental Services

Services provided by the government to its citizens; these can include education, healthcare, and public safety.

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied based on the taxpayer's ability to pay, where those with higher income or wealth should pay more taxes.

Tax Burdens

The measure of the financial impact of taxes on individuals, households, or businesses, typically reflecting the total taxes paid as a percentage of income.

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.