Which of the Following Is an Example of the Appropriate

question 28

Multiple Choice

Which of the following is an example of the appropriate implementation of a system of quality control?

• A)The firm requires all documents obtained during the audit to be destroyed immediately following the engagement to ensure the client's information remains confidential.
• B)The firm's quality control policies have evolved through the performance of audit procedures but are not formally developed or communicated to staff members.
• C)All firm employees must verbally confirm their compliance with the appropriate independence requirements before being assigned to an engagement.
• D)The firm uses manuals and standardized forms for audit documentation to help ensure engagement performance objectives and quality standards are met.

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Definitions:

Department Store

A large retail store offering a wide variety of goods organized into departments.

Responsibility Centers

Entities within an organization responsible for controlling revenue and expenses, influencing the operational and financial results.

Cost Centers

Parts of an organization where costs can be identified and directly attributed, but which do not directly generate revenue.

Profit Centers

Parts of an organization that directly contribute to its profit through their operations and are responsible for their own revenues and costs.