If a public accounting firm is requested by a client of another audit firm to provide an opinion on the application of an accounting principle, the public accounting firm should:
A) refuse to give an opinion.
B) inform ASIC.
C) advise the existing auditor.
D) all of the above

Question

Quizplus · Accepted Answer

The public accounting firm should advise the existing auditor as they have a duty to respect the relationships between clients and auditors. Refusing to give an opinion may harm the client's relationship with their auditor, while informing ASIC may not be necessary or appropriate in this situation.

If a Public Accounting Firm Is Requested by a Client