Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement?
a. The CPA’s lack of understanding of the prospective client’s internal auditor’s computer-assisted audit techniques.
b. Management’s disregard of its responsibility to maintain an adequate internal control environment.
c. The CPA’s inability to determine whether related-party transactions were consummated on terms equivalent to arm’s-length transactions.
d. Management’s refusal to permit the CPA to perform substantive tests before the year-end.
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