Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should be rejected?
A)The details of most recorded transactions are not available after a specified period of time.
B)Internal control activities requiring segregation of duties are subject to management override.
C)It is unlikely that sufficient appropriate evidence is available to support an opinion on the financial statements.
D)Management has a reputation for consulting with several accounting firms about significant accounting issues.

Question

Quizplus · Accepted Answer

If the CPA determines that there is not sufficient appropriate evidence available to support an opinion on the financial statements, they should reject the audit engagement. This is because the CPA cannot issue an opinion on the financial statements without sufficient appropriate evidence, and if they were to proceed with the engagement, they could face legal and professional consequences. Options A, B, and D may require additional assessment and consideration, but they may not necessarily lead to an outright rejection of the audit engagement.

Which of the Following Factors Most Likely Would Lead a CPA