A CPA firm should decline an offer to perform consulting services engagement if
A) the proposed engagement is not accounting related.
B) recommendations made by the CPA firm are to be subject to review by the client.
C) acceptance would require the CPA firm to make management decisions for an audit client.
D) any of the above is true.

Question

Quizplus · Accepted Answer

A CPA firm should not make management decisions for their audit clients as this compromises their independence and objectivity. If the consulting engagement requires the CPA firm to make management decisions for the audit client, they should decline the offer. Choices A and B are not the best choice because they do not address the fundamental issue of the consulting engagement requiring management decisions from the CPA firm. Therefore, choice C is the best choice.

A CPA Firm Should Decline an Offer to Perform Consulting