Multiple Choice
When making a client continuance decision the auditor should view an individual client as
A) an individual stock in an investment portfolio from a risk and return perspective.
B) a stand alone investment with a fixed level of risk and return.
C) since risk is unknown it is not a factor in the decision and the auditor should seek the highest fee possible.
D) an auditor must charge a standard fee based on the size of the client to maintain independence.
Correct Answer:

Verified
Correct Answer:
Verified
Q22: For the client to be considered a
Q23: The management representation letter should be signed
Q24: Guarantees by the client of the liabilities
Q25: If a client's major customer goes bankrupt
Q27: When a subsequent event provides evidence about
Q28: The Financial Reporting Council Audit Quality Framework
Q29: An example of a Type II Subsequent
Q30: The primary drivers of the Financial Reporting
Q31: In evaluating accounting estimates the auditor would
Q109: Which one of the following is the