A CPA Firm Would Provide Itself Reasonable Assurance of Meeting

question 75

Multiple Choice

A CPA firm would provide itself reasonable assurance of meeting its responsibility to offer professional services that conform with professional standards by

• A)Establishing an understanding with each client concerning individual responsibilities in a signed engagement letter.
• B)Assessing the risk that errors and fraud may cause the financial statements to contain material misstatements.
• C)Developing specific audit objectives to support management's assertions that are embodied in the financial statements.
• D)Maintaining a comprehensive system of quality control that is suitably designed in relation to its organizational structure.

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Definitions:

Two-digit Year

A date format that uses only the last two digits of the year, which can cause ambiguity or the "Year 2000 problem" in computing and data management.

Active Cell

The currently selected cell in a spreadsheet, where data can be entered or edited.

MIN Function

A function in programming and spreadsheet applications that returns the smallest value in a given set of numbers.

Auto Fill Options

In software applications, this feature predicts or completes the input based on previously typed characters or available data patterns.