Making client acceptance and continuance decisions is the first phase of the audit opinion formulation process.

Question

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Client acceptance and continuance decisions are made in the first phase of the audit opinion formulation process. This involves evaluating the potential risks and benefits of accepting or continuing with a client, as well as assessing the firm's independence, integrity, and ability to perform the audit. Once these decisions are made, the auditor can move on to planning and executing the audit, and ultimately forming the opinion on the financial statements.

Making Client Acceptance and Continuance Decisions Is the First Phase