A CPA firm may decide not to continue doing audits for an existing audit client simply due to what the CPA firm deems to be excessive risk, alone, even if the audit engagement is very profitable to the CPA firm.

Question

Quizplus · Accepted Answer

CPA firms have an ethical obligation to evaluate and manage the risks associated with an audit engagement. If the firm determines that the risks are too high, it may decide to decline or terminate the engagement, even if it means giving up a profitable client. This is in line with the principle of independence and objectivity in auditing, which requires auditors to maintain a professional skepticism and avoid any situation that may compromise their impartiality.

A CPA Firm May Decide Not to Continue Doing Audits