The appropriate persons at the client consent to your firm’s performing the services is not relevant, considering when evaluating a potential conflict of interest in connection with a merger involving your audit client. Thus, option C is correct.
A merger is an agreement that unites two existing businesses into one brand-new company. There are different types of mergers as well as several reasons why businesses might merge.
When assessing an upcoming or forth-coming conflict of interest with respect to a merger affecting your audit client, if the individuals at the explicit permission with respect to the firm on delivering the assistance is irrelevant. Therefore, option C is the correct option.
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The question is incomplete, the options will be:
1 Whether your firm’s policies prohibit such engagements.
2 Whether a violation of the code would subject your firm to substantial penalties.
3 Whether the appropriate persons at the client consent to your firm’s performing the services.
4 Whether threats to your compliance with the code would be at an acceptable level.