After an auditor had been engaged to
perform the first audit for a nonpublic entity,
the client requested to change the
engagement to a review. In which of the
following situations would there be a
reasonable basis to comply with the client's
request?
a. Management refused to sign the client
representation letter.
b. The client's bank required an audit
before committing to a loan, but the
client subsequently acquired
alternative financing.
c. The auditor was prohibited by the client
from corresponding with the client's legal
counsel.
d. The auditing procedures were
substantially complete and the auditor
determined that an unqualified opinion
was warranted, but there was a
disagreement concerning the audit fee.
perform the first audit for a nonpublic entity,
the client requested to change the
engagement to a review. In which of the
following situations would there be a
reasonable basis to comply with the client's
request?
a. Management refused to sign the client
representation letter.
b. The client's bank required an audit
before committing to a loan, but the
client subsequently acquired
alternative financing.
c. The auditor was prohibited by the client
from corresponding with the client's legal
counsel.
d. The auditing procedures were
substantially complete and the auditor
determined that an unqualified opinion
was warranted, but there was a
disagreement concerning the audit fee.