When Making a Client Continuance Decision the Auditor Should View

question 26

Multiple Choice

When making a client continuance decision the auditor should view an individual client as

• A)an individual stock in an investment portfolio from a risk and return perspective.
• B)a stand alone investment with a fixed level of risk and return.
• C)since risk is unknown it is not a factor in the decision and the auditor should seek the highest fee possible.
• D)an auditor must charge a standard fee based on the size of the client to maintain independence.

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Definitions:

Bivalvia

Bivalvia is a class of marine and freshwater mollusks with bodies enclosed by a two-part hinged shell, including clams, oysters, mussels, and scallops.

Two Shells

Refers to bivalves, a class of aquatic mollusks with bodies enclosed by a pair of hinged shells.

Structure Labeled

A term probably meant to describe a diagram or illustration where specific parts have been marked and named to indicate their identity or function.

Function

The specific role or activity of an organ, structure, or substance in an organism or system.