Bundle: Auditing: A Risk Based-Approach, Loose-leaf Version, 11th + MindTap Accounting, 1 term (6 months) Printed Access Card
Bundle: Auditing: A Risk Based-Approach, Loose-leaf Version, 11th + MindTap Accounting, 1 term (6 months) Printed Access Card
11th Edition
ISBN: 9781337734493
Author: JOHNSTONE, Karla M; Gramling, Audrey A.; Rittenberg, Larry E.
Publisher: Cengage Learning
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Chapter 1, Problem 41RQSC
To determine

Introduction:In the case of new clients, clients acceptance decision refers to the valuation of clients related risks and associated fees. In the case of existing clients, the continuance decision relates to the determination of continuance of audit work in the following period based on various factors.

To illustrate:The three possibilities that may happen to the clients in the audit firm’s beginning-of-period client portfolio. Also, state the factors considered when making decisions of client acceptance and continuance.

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