When Making a Client Continuance Decision the Auditor Should Evaluate

question 19

Multiple Choice

When making a client continuance decision the auditor should evaluate a client based upon which of the following?

• A)client entity characteristics.
• B)independence risk factors.
• C)financial reporting risks.
• D)all of the above.

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Definitions:

Substitutes

Substitutes are goods or services that can replace each other in usage, providing consumers with alternative choices when purchasing.

Price-Elastic

Descriptive of demand that is highly sensitive to changes in price, meaning a small price change can cause a significant change in the quantity demanded.

Different Brands

Different brands signify various products or services marketed under distinct names by the same or different companies, emphasizing uniqueness and identity in the marketplace.

Cheapest

Refers to the lowest price option available among similar products or services.