Gary West is a sole practitioner.He has conducted the audit of Reggie's Farm for the past 12 years.In the current year,Reggie's Farm expanded by acquiring two other farms,installed a new accounting system,and also started to export to the United States.Gary accepted the audit of Reggie's Farm for the upcoming year even though he has no experience with exports to the U.S.or companies the size of Reggie's Farm.Which element of quality control is compromised for Gary's firm?
A)independence
B)client acceptance or continuance
C)extent of professional development
D)general ethical requirements

Question

Quizplus · Accepted Answer

The compromised element of quality control for Gary's firm is client acceptance or continuance. Gary fails to consider the expanded operations of Reggie's Farm and the potentially increased risk in accepting the audit engagement without ensuring he has the necessary competence and resources to perform the audit effectively. As a result, he may have compromised the quality of the audit and violated the client acceptance or continuance element of quality control.

Gary West Is a Sole Practitioner