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NEW QUESTION: 1
When debugging the WDM system, it is mainly to ensure the flatness of the power at the end and the flatness of the signal-to-noise ratio.
NEW QUESTION: 2
Which of the following factors most likely would cause a CPA not to accept a new audit engagement?
A. The indications that management has not investigated employees in key positions before hiring them.
B. The inability to review the predecessor auditor's working papers.
C. The prospective client's unwillingness to permit inquiry of its legal counsel.
D. The CPA's lack of understanding of the prospective client's operations and industry.
Choice "A" is correct. A direct letter of inquiry to the entity's legal counsel is required, and a client's refusal
to permit such inquiry generally will result in a disclaimer of opinion. It is unlikely that a CPA would accept
a new audit engagement under such circumstances.
Choice "B" is incorrect. Inability to review the predecessor auditor's working papers would not cause a
CPA to decline a new audit engagement. The CPA would simply need to perform an appropriate level of
work to substantiate the opening financial statement balances.
Choice "C" is incorrect. The CPA need not have an understanding of the prospective client's operations
and industry before accepting a new audit engagement. Such an understanding may be obtained after
acceptance, during the planning phase of the engagement.
Choice "D" is incorrect. Indications that management has not investigated employees in key positions
before hiring them is a fraud risk factor that the auditor would need to consider in planning the audit, but it
would not cause the CPA to decline the engagement.
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