In Making Client Acceptance Decisions the Audit Firm Will Consider

question 71

Multiple Choice

In making client acceptance decisions the audit firm will consider:

• A) inherent and control risk of the client.
• B) audit risk to the CPA Firm.
• C) the client's business risk and the CPA Firm's engagement risk.
• D) CPA Firm's potential ongoing revenue from the audit client.

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Definitions:

Power

Power is the capacity or ability to direct or influence the behavior of others or the course of events, often rooted in control over resources, authority, or social structures.

Business Case

A documented argument or rationale presented to justify a business project or investment, detailing the benefits, costs, and risks.

Diversity

The inclusion of different types of people (such as people of different races, cultures, genders, etc.) in a group or organization.

Homosocial Reproduction

The tendency of the dominant men in organizations to reproduce themselves in their own images through their hiring practices.