When making a client continuance decision the auditor should evaluate a client based upon its relative risk and audit fee profile.

Question

Quizplus · Accepted Answer

When making a client continuance decision, the auditor should consider factors such as the client's financial stability, the likelihood of fraud or financial irregularities, and the cost-effectiveness of performing the audit. The client's relative risk and audit fee profile are important factors to consider in making this decision. Therefore, the statement is true.

When Making a Client Continuance Decision the Auditor Should Evaluate