What is one reason a firm might use to justify being chosen for an audit?

A firm might justify its selection for an audit based on the proposed fee and quality of service because this demonstrates a balance between cost-effectiveness and expertise. When choosing an auditing firm, clients are typically looking for a provider who can deliver a high standard of service at a competitive price. A firm that can clearly articulate its proposed fee structure alongside a commitment to quality can instill confidence in potential clients.

This approach also aligns with clients' expectations for transparency and value. The proposed fee reflects the firm's understanding of the resources and time required for an effective audit, while the assurance of quality service addresses the critical need for accuracy and reliability in financial reporting and compliance.

In contrast, other factors such as lack of previous experience, minimal knowledge of the industry, and unspecified personnel would not inspire confidence in a firm's ability to conduct an effective audit. These factors could imply a higher risk for the client, which would make them less likely to choose that firm for audit services.