Final answer:
Option c is false as the primary driver of client acceptance/continuance decisions is not solely the level of audit fees but includes various other important factors.
Step-by-step explanation:
With regard to client acceptance/continuance decisions, option c is false. The primary driver of the client acceptance/continuance decision is not solely the level of audit fees that the audit firm can charge to the client. Other factors such as risk assessment, firm's expertise, potential conflict of interest, and ethical considerations play a significant role in these decisions. Audit firms implement thorough evaluation processes to determine whether they should accept or continue a relationship with a client. They assess if they can maintain professional standards, legal and regulatory compliance and if the client aligns with the firm's risk profile and values. It is indeed true that audit firms do not have to accept all organizations requesting an audit and that client acceptance and continuance decisions are a part of their overall portfolio management activities. Viewing an individual audit client as analogous to an individual stock in an investment portfolio is a useful metaphor for understanding the risk and reward considerations that go into these decisions.