A Firm of Independent Auditors Must Establish and Follow Explicit

question 44

Multiple Choice

A firm of independent auditors must establish and follow explicit quality control policies and procedures because these standards:

• A)are necessary to meet increasing requirements of auditors' liability insurers.
• B)give reasonable assurance that the firm as a whole will conform to the auditing standards.
• C)include formal filing of records of such policies and procedures.
• D)are required by the Australian Securities and Investments Commission for auditors of all entities.

---

Definitions:

Memory Processes

The mental functions involved in acquiring, storing, and retrieving information.

Encoded

The conversion of information into a specific format for efficient processing, storage, or transmission.

Stored

Refers to the retention of information or substances in a designated space or medium for future use.

Retrieved

The process of getting back information stored in memory.