Which of the following factors most likely would cause an auditor to not accept a new audit engagement?
A)An inadequate understanding of the entity's internal control.
B)The close proximity to the end of the entity's financial year.
C)The conclusion that the entity's management probably lacks integrity.
D)An inability to perform preliminary analytical procedures before assessing control risk.

Question

Quizplus · Accepted Answer

If an auditor concludes that the entity's management lacks integrity, they are unlikely to accept the audit engagement as they would be unable to rely on any information provided by management. This would impair their ability to perform an effective audit.

Which of the Following Factors Most Likely Would Cause an Auditor