Which of the following factors would most
likely cause a CPA to decide not to accept a
new audit engagement?
a. The CPA’s lack of understanding of the
prospective client’s internal auditor’s
computer-assisted audit techniques.
b. Management’s disregard of its
responsibility to maintain an
adequate internal control
environment.
c. The CPA’s inability to determine whether
related-party transactions were
consummated on terms equivalent to
arm’s-length transactions.
d. Management’s refusal to permit the CPA
to perform substantive tests before the
year-end.
likely cause a CPA to decide not to accept a
new audit engagement?
a. The CPA’s lack of understanding of the
prospective client’s internal auditor’s
computer-assisted audit techniques.
b. Management’s disregard of its
responsibility to maintain an
adequate internal control
environment.
c. The CPA’s inability to determine whether
related-party transactions were
consummated on terms equivalent to
arm’s-length transactions.
d. Management’s refusal to permit the CPA
to perform substantive tests before the
year-end.