Which of the following conditions most likely would pose the greatest risk in accepting a new audit engagement?Before accepting an engagement to audit a new client, a CPA is required to obtain:According to the AICPA Code of Professional Conduct, which of the following financial interests in the client during the period of

the engagement impairs a CPA's independence?

A$.$ All direct and indirect financial interests.

B$.$ Only direct financial interests.

C$.$ Only direct and material indirect financial interests.

D$.$ Only material financial interests.

A$.$ An assessment of fraud risk factors likely to cause material misstatements.

B$.$ An understanding of the prospective client's industry and business.

C$.$ The prospective client's signature to a written engagement letter.

D$.$ The prospective client's consent to make inquiries of the predecessor.

A$.$ Staff will need to be rescheduled to cover this new client.

B$.$ There will be a client$-$imposed scope limitation$.$

C$.$ The firm will have to hire a specialist in one audit area.

D$.$ The client's financial reporting system has been in place for $10$ years.