If a Client Refuses to Accept an Auditors' Report That

question 45

Multiple Choice

If a client refuses to accept an auditors' report that has been modified, the public accounting firm should withdraw from the engagement and give its reasons in writing to the board of directors except when:

• A) The auditor is unable to obtain sufficient appropriate evidence about a suspected illegal act
• B) The client fails to account for or disclose properly a material amount connected with an illegal act
• C) The auditor is unable to estimate amounts involved in an illegal act
• D) The auditor is unable to observe the physical inventory

---

Definitions:

Instincts

Innate, typically fixed patterns of behavior in animals in response to certain stimuli.

Preference Test

A method used to determine an individual’s preference or choice between two or more options, often used in psychological and market research.

Directionality

The quality or condition of having a specific direction, orientation, or tendency.

Activation

Involves the arousal of the brain or body to a state of increased responsiveness to stimuli.