A request for proposal (RFP) is required for each client acceptance or continuance decision.

Question

Quizplus · Accepted Answer

A request for proposal (RFP) is not required for each client acceptance or continuance decision. It is only required in situations where the auditor is seeking new clients or engagements. The RFP process allows the auditor to gather information about the potential client's needs and expectations, evaluate their suitability as a client for the firm, and make an informed decision about whether or not to accept the engagement. Conversely, when deciding whether to continue an existing engagement or client relationship, the auditor typically relies on a variety of other factors, such as ongoing risk assessments, discussions with management, and evaluation of prior audit performance.

A Request for Proposal (RFP) Is Required for Each Client