Assuming your client has had a long-standing relationship with a law firm that has resulted in much profitable business for the law firm as they have advised the client in all areas of its business. If the law firm should decide it no longer wants to conduct business with your client, this should...
A) not be a cause for concern of potential financial statement fraud.
B) be a minor concern that financial statement fraud may be occurring.
C) be a large cause for concern that financial statement fraud may be occurring.
D) indicate that the client has likely outgrown the law firm.

Question

Quizplus · Accepted Answer

C: Lawyers rarely give up a profitable client unless something is very wrong; hence, a red flag should go up when a law firm drops a client.

Assuming Your Client Has Had a Long-Standing Relationship with a Law