Question

If an auditor is requested to perform nonaudit services for a public company audit client, who is responsible for agreeing to those services with the audit firm?

A) The client's management
B) The client's chief executive officer
C) The client's chief financial officer
D) The client's audit committee

Answer 1

The client's audit committee is responsible for agreeing to nonaudit services with the audit firm.

Step-by-step explanation:

The correct answer is D) The client's audit committee.

When an auditor is requested to perform nonaudit services for a public company audit client, it is the responsibility of the client's audit committee to agree to those services with the audit firm. The audit committee is composed of independent directors who are responsible for overseeing financial reporting and ensuring the integrity of the audit process.

By involving the audit committee in the agreement process, it helps to maintain independence and objectivity in the audit engagement and avoids potential conflicts of interest.