When making a client continuance decision the auditor should view an individual client as
A)an individual stock in an investment portfolio from a risk and return perspective.
B)a stand alone investment with a fixed level of risk and return.
C)since risk is unknown it is not a factor in the decision and the auditor should seek the highest fee possible.
D)an auditor must charge a standard fee based on the size of the client to maintain independence.

Question

Quizplus · Accepted Answer

The auditor should view each client as a stock in an investment portfolio and consider the risk and return associated with continuing to serve that client. This approach allows the auditor to consider the client's unique circumstances and the potential impact on their reputation and relationships with other stakeholders. It also helps the auditor balance risk and return in their overall portfolio of clients.

When Making a Client Continuance Decision the Auditor Should View