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Why high risk audit clients for high audit fees be avoided

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Explain how the acceptance of large, high-risk audit clients for relatively high audit fees may threaten an audit firm's de facto and perceived independence. Under what circumstances should such prospective clients be avoided?

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The solution discusses why high risk audit clients for high audit fees should be avoided.

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The problem of perceived independence can happen when too large of a percentage of the firm's overall revenues come from the same client. Thus, the firm may be ...

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