Which of the following statements regarding client acceptance/continuance decisions is false? a. Both audit firm decisions and
Question:
Which of the following statements regarding client acceptance/continuance decisions is false?
a. Both audit firm decisions and client decisions have an effect on an audit firm’s ongoing client portfolio.
b. It would not be appropriate for audit firms to perform background checks on management of a potential client.
c. Auditors will assess the background and experience of a potential client’s accounting personnel as they make client acceptance/ continuance decisions.
d. Auditors will perform a review of any questionable accounting policies that might indicate management’s lack of commitment to GAAP as they make client acceptance/ continuance decisions.
Step by Step Answer:
Auditing A Risk Based Approach
ISBN: 9780357721872
12th Edition
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg