Before Accepting an Engagement, the Auditor Should Identify Special Circumstances

Multiple Choice

Before accepting an engagement, the auditor should identify special circumstances and unusual risks. Which of these conditions is not directly part of a review of such a circumstance or risk?

A) reviewing industry and economic data.
B) identifying intended users of the audited financial statements.
C) assessing a prospective client's legal and financial stability.
D) evaluating the entity's auditability.