Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
Question
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Chapter 1, Problem 18CYBK
To determine

Introduction:Discontinued clients can be defined as those clients for whom the auditing services are discontinued by the audit firm. The auditing firm informs the clients about the discontinuance of auditing services in future.

To examine:Whether the given statement is true or false.

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Students have asked these similar questions
The AICPA removed its general prohibition of CPAs taking commissions and contingentfees becausea. CPAs prefer more price competition to less.b. Commissions and contingent fees enhance audit independence.c. Nothing is inherently wrong about the form of fees charged to nonaudit clients.d. Objectivity is not always necessary in accounting and auditing services
Provide a detailed example as to what might cause an auditor/audit firm to decline taking on a new client/audit engagement.
What change at a non-audit client DOES NOT require an independence evaluation? The client wants to acquire a KPMG audit client. The CEO of the client changes. The client is acquired by an existing KPMG audit client. KPMG is appointed the auditor of the client's parent company.

Chapter 1 Solutions

Auditing: A Risk Based-Approach (MindTap Course List)

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