When making a client continuance decision the auditor should evaluate a client based upon which of the following?
A)client entity characteristics.
B)independence risk factors.
C)financial reporting risks.
D)all of the above.

Question

Quizplus · Accepted Answer

When making a client continuance decision, the auditor should evaluate a client based on all of the above factors - client entity characteristics, independence risk factors, and financial reporting risks. The evaluation should help the auditor determine the risk of material misstatement in the financial statements and whether the auditor is able to continue the engagement with the client. Therefore, option D is the best choice.

When Making a Client Continuance Decision the Auditor Should Evaluate