Steve, an audit partner at a medium$-$sized CPA firm has been assigned the task of mentor ing Barbara, a newly promoted audit senlor$.$ One day at lunch, Steve and Barbara are discussing the topic of taking on new clients and retaining existing ones. Bartiara is howing a resporse to Barbara's question is

to explain that because the auditor is reliant on its own reputation to both obtain future clierts and maintain exhting ones. the auditor must carefully assess the clients risk profile to make sure audi risk can be elfminated.

to explain that because a major part of what the auditor provides is credibility, it is both perudent and reproprute for the auditor to carefully reevaluate clients and the risk they may represent to the auditors resulation.

$,$ to respond that from a financial standpoint, the auditor owes a duty to itself to revaluate its oneping maximize profitability.