A RFP is an important source of information that is:
A) provided by a potential client about its proposal process and audit engagement.
B) provided by an auditor about how its professional competencies match the needs of the audit engagement.
C) used only for audits of public companies.
D) used only when a company needs to change auditors.

Question

Quizplus · Accepted Answer

A RFP (Request for Proposal) is a document provided by a potential client detailing the requirements and expectations for an audit engagement. It is used to solicit proposals from audit firms and is an important source of information for understanding the client's needs and expectations. It is not limited to audits of public companies and can be used in any type of audit engagement. It is also not only used when a company needs to change auditors, but rather when they are seeking to engage an auditor for the first time or renew their contract with an existing auditor.

A RFP Is an Important Source of Information That Is