CPA Aud Quiz
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ETHICS, PROFESSIONAL RESPONSIBILITIES AND GENERAL PRINCIPLES
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A nonissuer entity requests an audit, but management insists the financial statements will be prepared on a "tax basis" that omits income tax disclosures and uses cash receipts as revenue even when billed. The auditor concludes the basis is not an acceptable financial reporting framework for the intended users. What is the most important precondition for engagement acceptance?
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