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.

---

Definitions:

Excessive Reassurance Seeking

Part of Coyne’s model of depression where a depressed person seeks reassurance about him- or herself from non-depressed people.

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles, often used as a supplement to treat insomnia and jet lag.

Seasonal Affective Disorder

A type of depression that occurs at a specific time of year, typically in the winter months, associated with reduced exposure to sunlight.

Seasonal Variation

Seasonal variation refers to changes or patterns that occur in data or behaviour at specific times of the year, often influenced by changes in the environment, weather, or societal activities.