In making a decision of whether to take on a new audit client, the auditor should perform all of the following except: 1. Reviewing the credit rating of the proposed client. 2. Performing preliminary tests of internal controls. 3. Evaluating the firm's ability to service the client properly. 4. Inquiring of third parties as to the reputation of the proposed client. O 3 O 1 O 2 4
In making a decision of whether to take on a new audit client, the auditor should perform all of the following except: 1. Reviewing the credit rating of the proposed client. 2. Performing preliminary tests of internal controls. 3. Evaluating the firm's ability to service the client properly. 4. Inquiring of third parties as to the reputation of the proposed client. O 3 O 1 O 2 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Acceptance decisions are critical since potential clients and/or contracts might jeopardize independence or expose the firm to threats, both of which must be carefully considered.
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