Which of the following factors most likely would cause a CPA to not accept a new audit engagement?

Question

Quizplus · Accepted Answer

Choice "D" is correct. An auditor must consider the availability and adequacy of the client's accounting records and the integrity of management in deciding whether or not to accept a new audit engagement. A prospective client that is unwilling to provide all financial records would give the auditor cause for concern about both of these issues. Choice "A" is incorrect. The auditor may apply acceptable alternative procedures to audit inventory. Choice "B" is incorrect. The auditor can accept the engagement and obtain an understanding of the client's operations and industry after acceptance. Choice "C" is incorrect. Inability to review the predecessor's audit documentation means the auditor will expend greater effort auditing beginning balances. It does not mean the engagement should be declined.

Which of the Following Factors Most Likely Would Cause a CPA