ACCA Audit and Assurance (F8) Practice Exam

Which aspect is NOT considered in Client Screening?

1. Management integrity

2. Engagement economics

3. Marketing strategy

4. Risk

The correct answer is: Marketing strategy

Client screening is an essential process for auditors to evaluate whether to accept or continue with a client relationship. Key aspects of client screening typically include management integrity, engagement economics, and risk assessment. Management integrity pertains to the honesty and ethical behavior of a client's senior management, which influences the reliability of the financial statements and the overall audit environment. Engagement economics involves assessing the financial viability and profitability of the audit engagement, ensuring it is economically feasible for the audit firm. Risk evaluation is crucial as it involves understanding the potential risks associated with the client, such as financial stability and exposure to fraud or compliance issues. Marketing strategy, on the other hand, is typically not a fundamental consideration during client screening. While understanding a client's market position may be valuable in broader business strategy and client relationships, it does not directly impact the audit's integrity or feasibility. Therefore, it is not included in the critical elements that auditors typically examine during the client screening process.