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A Public Accounting Firm Should Decline an Offer to Perform

Question 3

Multiple Choice

A public accounting firm should decline an offer to perform management advisory services if:


A) the proposed engagement is not accounting- related.
B) recommendations to be made by the firm are to be subject to review by the client.
C) the firm audits the financial statements of a subsidiary of the prospective client.
D) acceptance would require the firm to make management decisions for an audit client.

Correct Answer:

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