The Objective of Quality Control Dictates That a Public Accounting

question 14

Multiple Choice

The objective of quality control dictates that a public accounting firm should establish policies and procedures for professional development which provide reasonable assurance that all entry-level personnel:

• A) prepare working papers that are standardised in form and content.
• B) have the knowledge required to enable them to fulfil responsibilities assigned.
• C) advance within the organisation.
• D) develop specialties in specific areas of public accounting.

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Definitions:

Cash Payments

Disbursements of money to fulfill liabilities or acquire goods and services.

Cash Receipts

The collection of money, including coins, notes, checks, and electronic transfers, received by a business.

Journalizing

The act of recording financial transactions in a company's journal, detailing the accounts that are affected and in which direction.

Posting Process

The act of recording financial transactions in the appropriate accounts within the general ledger.