An audit firm culture that emphasizes "doing the right thing" does not incorporate which of the following to enhance audit quality?
A)Encouraging auditors to seek consultation with other members of the audit firm.
B)Yielding to management's demands in order to promote additional service engagements.
C)Taking sufficient time to deal with difficult client issues.
D)Emphasizing long-term reputation over the immediate satisfaction of client preferences.

Question

Quizplus · Accepted Answer

Yielding to management's demands in order to promote additional service engagements compromises audit quality by potentially overlooking significant risks or material misstatements in financial statements. A culture that emphasizes "doing the right thing" should prioritize the integrity of the audit over short-term financial benefits. Thus, B is not included in enhancing audit quality. On the other hand, A, C, and D are included in enhancing audit quality. Encouraging auditors to seek consultation with other members of the audit firm helps to ensure a comprehensive and thorough audit. Taking the necessary time to deal with difficult client issues can help to uncover potential issues that may otherwise go unnoticed. Lastly, emphasizing long-term reputation over the immediate satisfaction of client preferences can help to build trust with clients and promote the integrity of the audit process.

An Audit Firm Culture That Emphasizes "Doing the Right Thing