AC 430 Park University Client Acceptance Decision Discussion

According to Chapter 3, one of the key factors that influences the client acceptance decision is the assessment of the integrity of the client’s management. When assessing management integrity, the auditor will consider the following factors:

• the reputation of the client, its management, directors, and key stakeholders
• client’s reasons for switching audit firms, if the company was previously audited
• management’s attitude to risk exposure
• management’s attitude to the implementation and maintenance of adequate internal controls

• the appropriateness of management’s interpretation of accounting rules
• management’s willingness to allow the auditors full access to client personnel, records, and information required to form their opinion

UNIT LEARNING OUTCOMES

• ULO #1: Evaluate the factors influencing client acceptance and continuance decisions (CLO 3)
• ULO #3: Describe the role and importance of professional skepticism (CLO 3)

Directions

View the Bloomberg video here: https://education.wiley.com/content/Johnson_Auditi… Answer the following questions:

1. Which factors would weigh negatively on your acceptance of Tesla as an audit client?
2. Which factors would weigh positively on your acceptance of Tesla as an audit client?