According to the Financial Reporting Council (FRC),when Is the Culture

question 90

Multiple Choice

According to the Financial Reporting Council (FRC) ,when is the culture of an audit firm likely to provide a positive contribution to audit quality?

• A)When the leadership of the audit firm ensures partners and other staff have sufficient time and resources to deal with difficult issues as they arise.
• B)When the leadership of the audit firm ensures robust systems for client acceptance and continuation based on ability to pay fees.
• C)When the leadership of the audit firm creates an environment where achieving efficiency is valued,invested in and rewarded.
• D)When the leadership of the audit firm ensures financial considerations drive actions.

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Definitions:

Norms And Procedures

Established guidelines and methods of operation within an organization or society that dictate expected behavior and actions.

External Party

An individual or group outside of an organization that interacts or has a relationship with it.

Resistance To Change

Opposition or reluctance to adapt to new conditions, innovations, or transformations.

Hierarchical Structure

An organizational setup where each level controls the level below, creating a pyramid-shaped system of control and authority.