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eBookReferencesItem $34$

Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement?

Multiple Choice

Management's refusal to permit the CPA to perform substantive tests before the year$-$end.

The CPA's inability to determine whether related party transactions were consummated on terms equivalent to arm's$-$length transactions.

The prospective client refuses to let the predecessor auditor respond to communication from the successor auditor.

The CPA's lack of understanding of the prospective client's internal audit function's audit plan.