What Is a Purpose of the Acceptance and Continuance of Client

question 57

Multiple Choice

What is a purpose of the acceptance and continuance of client relationships and specific engagements element of quality control?

• A)Guarantee that firms do not associate with clients whose management lacks integrity.
• B)Provide reasonable assurance that firms do not associate with clients whose management lacks integrity.
• C)Guarantee that firms will not be sued as a result of association with a client.
• D)Provide reasonable assurance that firms will not be sued as a result of association with a client.

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Definitions:

Nonstock Companies

Companies organized not to issue stock to the public, often structured to provide a service or benefit without profit motive.

Privately Held

A company ownership structure where its shares are not traded on public stock exchanges and are instead owned by a smaller number of private investors.

Foreign Corporation

A corporation that is incorporated under the laws of a country different from the country where it conducts its operations.

Incorporated

A legal process used to form a corporate entity or company which is recognized as a legal person under the law.