Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? A)Lack of understanding of the potential client's internal auditors' computer-assisted audit techniques. B)Management's disregard for internal control. C)The existence of related party transactions. D)Management's attempt to meet earnings per share growth rate goals.

Question

Quizplus · Accepted Answer

A CPA would not want to accept a new audit engagement if management has a disregard for internal control, as this could indicate a high risk of material misstatements in the financial statements. Lack of understanding of potential client's internal auditors' computer-assisted audit techniques and the existence of related party transactions are risks that can be managed with appropriate audit procedures. Management's attempt to meet earnings per share growth rate goals is a business decision and would not necessarily prevent a CPA from accepting an audit engagement.

Which of the Following Factors Would Most Likely Cause a CPA