A CPA Firm Establishes Quality Control Policies and Procedures for Deciding

question 22

Multiple Choice

A CPA firm establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client.The primary purpose for establishing such policies and procedures is:

• A)To enable the auditor to attest to the integrity or reliability of a client.
• B)To comply with the quality control standards established by regulatory bodies.
• C)To minimize the likelihood of association with clients whose managements lack integrity.
• D)To lessen the exposure to litigation resulting from failure to detect fraud in client financial statements.

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Definitions:

Moral Values

Fundamental beliefs about what is right, wrong, good, or bad in human conduct, often influenced by societal norms and personal principles.

Organizations

Structured groups of people working together to achieve common goals.

Charismatic Leadership

A leadership style characterized by leaders who inspire and motivate followers through their charismatic attributes and vision.

Work Existence

refers to the aspect of having employment and its significance in an individual's life, often implying the balance between work and other life facets.