An auditor will typically evaluate their clients annually to determine whether to retain them or not.

Question

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An auditor typically evaluates their clients annually to determine whether to retain them or not. This process is called client acceptance and continuance. It involves assessing the risk associated with the client, their financial stability, management credibility, and the adequacy of their internal controls. Based on the results of this evaluation, the auditor decides whether to continue with the client or not.

An Auditor Will Typically Evaluate Their Clients Annually to Determine