The Primary Purpose of Establishing Quality Control Policies and Procedures

question 33

Multiple Choice

The primary purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to

• A) enable the CPA firm to attest to the reliability of the client.
• B) satisfy the CPA firm's duty to the public concerning the acceptance of new clients.
• C) minimize the likelihood of association with clients whose management lacks integrity.
• D) anticipate before performing any fieldwork whether an unqualified opinion can be expressed.

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Definitions:

Dollar Price

Dollar price refers to the cost or value of a good or service expressed in terms of the amount of U.S. dollars required to purchase it.

Demand For German Goods

The desire or need for products made in Germany by consumers both within the country and internationally.

U.S. Current Account Deficit

A measurement of the country’s international trade where the value of the goods and services it imports exceeds the value of the products it exports.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, historically used by various countries.