Which of the Following Is an Element of a System

question 24

Multiple Choice

Which of the following is an element of a system of quality control that should be considered by a public accounting firm in establishing its quality control policies and procedures?

• A)Lending credibility to a client's financial statements.
• B)Using statistical sampling techniques.
• C)Acceptance and continuance of client relationships and specific engagements.
• D)Membership in the Center for Public Company Audit Firms.

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Definitions:

Par

The face value or nominal value of a bond, stock, or other financial instrument, typically the amount on which interest payments or dividends are calculated.

Zero-Coupon Bond

A debt security that does not pay periodic interest, instead being sold at a discount and maturing at face value, generating profit at redemption.

Interest Payments

The cash outflows that a borrower makes to a lender as a compensation for the use of borrowed funds.

Premium Bond

A bond that is trading above its par value in the financial markets.