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:

Pregnant Patient

An expectant mother under medical care for the duration of her pregnancy.

Statements

Detailed records or documents summarizing financial transactions, positions, or conditions pertaining to an individual or organization's accounts.

Smaller Practices

Healthcare practices with a limited number of practitioners, offering more personalized care, often in a community setting.

Billing Time

The amount of time that professionals, such as lawyers or consultants, record for the purpose of charging their clients, often measured in increments of hours.