In assessing whether to accept a client for an audit engagement, an auditor should consider the:
A)entity's business risk.
B)auditor's engagement risk.
C)integrity of management.
D)All the given answers are correct.

Question

Quizplus · Accepted Answer

All of the options listed are important considerations for an auditor when deciding whether to accept or continue an audit engagement. The entity's business risk is important as it could impact the company's financial statements and the auditor's opinion. The auditor's engagement risk, which includes factors such as the client's industry reputation, complexity of operations, and prior audit experience, also plays a significant role in accepting the engagement. The integrity of management is crucial to consider as the auditor relies on the honesty and transparency of management to produce reliable financial statements. Therefore, all of the given answers are correct.

In Assessing Whether to Accept a Client for an Audit