Question: Choose the statement that is false. How should external auditors determine that a particular client is too toxic to continue to audit? a. Consult with
Choose the statement that is false. How should external auditors determine that a particular client is too toxic to continue to audit? a. Consult with the client's legal counsel or other specialists about the application of relevant laws and regulations to the circumstances and the possible effects on the financial statements. b. Apply additional procedures, if necessary, to obtain further understanding of the nature of the acts. c. Estimate if the extra work related to assessing internal control weaknesses, assisting with internal investigations, and supporting bankruptcy trustees outweighs the risk of being sued for missing the fraud. d. Consider the reliability of management representations
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