Defensive auditing includes all of the following except
A)clarifying the nature of the arrangement through the use of a written engagement letter.
B)knowing when your client is about to fire your firm before hand.
C)carefully selecting which clients to accept and retain.
D)evaluation of a firm's capacity to adequately perform services for a specific client.

Question

Quizplus · Accepted Answer

Defensive auditing includes taking proactive measures to manage risks associated with providing audit services to clients. Options A, C, and D are all examples of proactive measures. Option B is not an example of a proactive measure because knowing when a client is about to fire the firm is reactive, rather than proactive.

Defensive Auditing Includes All of the Following Except