Maralee has been approached by J.Fox Entertainment to perform an audit of her theatre company.Maralee has never audited a theatre company before.Maralee can
A) not accept the engagement because she does not have the specialized industry knowledge.
B) recommend another auditor and receive a fee for the referral.
C) accept the engagement if she can obtain the required knowledge before the end of the engagement.
D) accept the engagement with the understanding that additional hours will be required for Maralee to learn and understand the nature of the business.

Question

Quizplus · Accepted Answer

Maralee can accept the engagement if she can obtain the required knowledge before the end of the engagement, as auditors are allowed to accept engagements in industries they are not initially familiar with, provided they acquire the necessary understanding in a timely manner.

Maralee Has Been Approached by J