If the CPA is unable to implement effective safeguard to a threat of compliance with the accounting profession's ethical rules, he/she should _______.

Question

Quizplus · Accepted Answer

If the CPA is unable to implement effective safeguards, he/she should decline or terminate the engagement. Continuing with the engagement could result in a violation of the accounting profession's ethical rules, which could damage the CPA's reputation and result in disciplinary action. Limiting the engagement to non-audit areas or only Federal taxation would not effectively address the compliance threat.

If the CPA Is Unable to Implement Effective Safeguard to a Threat