Which of the following factors would most likely cause an audit firm to decline a new audit engagement?

Correct answer: D) The firm has no staff with experience of the client's specialised industry and cannot obtain such staff in time

Explanation

A firm should accept work only if it has the competence, capabilities and resources to perform it properly, so a lack of relevant expertise is a strong reason to decline. A young business, a busy year end or a request for a fee estimate are normal commercial matters that can be managed. Accepting work outside the firm's competence would breach the principle of professional competence and due care.