A small CPA firm provides audit services to a large local company.Almost eighty percent of the CPA firm's revenues come from this client.Which statement is most likely to be true?

Question

Quizplus · Accepted Answer

The fact that a large portion of the CPA firm's revenues come from one client implies that the firm may be financially dependent on that client. This can lead to a lack of independence and an appearance of bias in the audit process. The auditor should carefully consider any potential threats to their independence and take appropriate steps to address them.

A Small CPA Firm Provides Audit Services to a Large