An Auditor Who Accepts an Audit Engagement and Does Not

question 58

Multiple Choice

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity should:

• A)engage financial experts familiar with the nature of the business entity.
• B)obtain a knowledge of matters that relate to the nature of the entity's business.
• C)refer a substantial portion of the audit to another CPA who will act as the principal auditor.
• D)first inform management that an unqualified opinion cannot be issued.

---

Definitions:

Canadian History

The historical development and events that have shaped Canada, its people, and its cultural and political identity.

Institutional Racism

The systemic distribution of resources, power, and opportunity in a society to the benefit of people who are white and the exclusion and detriment of people of color, embedded within laws, policies, and practices of public and private institutions.

Remedial Class

Educational classes focused on improving skills in specific subjects to help students reach the standard level of competency.

Benchmarks

Standardized points of reference or metrics used to measure and compare the performance of various entities or processes.