A CPA Firm Establishes Quality Control Policies and Procedures for Deciding

question 22

Multiple Choice

A CPA firm establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client.The primary purpose for establishing such policies and procedures is:

• A)To enable the auditor to attest to the integrity or reliability of a client.
• B)To comply with the quality control standards established by regulatory bodies.
• C)To minimize the likelihood of association with clients whose managements lack integrity.
• D)To lessen the exposure to litigation resulting from failure to detect fraud in client financial statements.

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Definitions:

Content Management System

Software that enables users to create, manage, and modify content on a website without needing specialized technical knowledge.

Wiki

A collaborative website or database where users can add, modify, or delete content directly from their web browser, often used for gathering and organizing information on various topics.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony and conformity results in irrational or dysfunctional decision-making outcomes.

Increased Performance

An improvement in the efficiency, output, or quality of a process or system.