Which of the following statements regarding client acceptance/continuance decisi
ID: 2338003 • Letter: W
Question
Which of the following statements regarding client acceptance/continuance decisions is false?
An audit firm's client portfolio is impacted by both audit firm decisions and client decisions
Auditors are not required to perform audits for any organization that asks for an audit
Auditors should assess the background and experience of accounting personnel of a potential client
It would not be appropriate for audit firms to perform background checks on management of a potential client
a.An audit firm's client portfolio is impacted by both audit firm decisions and client decisions
b.Auditors are not required to perform audits for any organization that asks for an audit
c.Auditors should assess the background and experience of accounting personnel of a potential client
d.It would not be appropriate for audit firms to perform background checks on management of a potential client
Explanation / Answer
It would not be appropriate for audit firms to perform background checks on management of a potential client
For higher-risk engagements, Auditors should consider performing a background check on key members of the company’s management.
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