In trying to decide whether to accept a prospective client, a CPA firm is not likely to
Show
Recommended textbook solutions
The Language of Composition: Reading, Writing, Rhetoric2nd EditionLawrence Scanlon, Renee H. Shea, Robin Dissin Aufses 661 solutions
Technical Writing for Success3rd EditionDarlene Smith-Worthington, Sue Jefferson 468 solutions Technical Writing for Success3rd EditionDarlene Smith-Worthington, Sue Jefferson 468 solutions
Literature and Composition: Reading, Writing,Thinking1st EditionCarol Jago, Lawrence Scanlon, Renee H. Shea, Robin Dissin Aufses 1,697 solutions The procedures that Morgan should apply in deciding whether to accept this prospective audit client would ordinarily include the following: (1) Evaluate the CPA firm's independence with respect to the prospective audit client. (1) The nature of the client, including the client's application of accounting policies—The auditors' understanding of this area will include the client's competitive position, organizational structure, accounting policies and procedures, ownership, capital structure, and product lines. The understanding will also encompass an understanding of the client's business model and its major business processes. What are three things to consider when deciding whether to accept a new client?Client acceptance evaluation should include General Considerations, Management Integrity, Management Commitment to GAAP, Management Internal Control Consciousness, Financial Strength of the Client, and Other Risk Factors.
What factors most likely cause a CPA to decide not to accept a new audit engagement?Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? Management's disregard for internal control.
Which situation would likely make an accountant not accept a new audit?Auditor shall not accept an audit engagement if the management imposes any limitation on the scope which will result in the auditor disclaiming an opinion on the financial statements, unless required by law or regulation to do so.
What factors would you consider in deciding whether to accept an engagement?In making a decision whether to accept or reject an engagement, an auditor should consider competence, independence, integrity of the prospective client's management and its ability to serve the client properly.
|