A firm of independent auditors must establish and follow explicit quality control policies and procedures because these standards:
A) are necessary to meet increasing requirements of auditors' liability insurers.
B) give reasonable assurance that the firm as a whole will conform to the auditing standards.
C) include formal filing of records of such policies and procedures.
D) are required by ASIC for auditors of all entities.

Question

Quizplus · Accepted Answer

Quality control policies and procedures are necessary for auditors to provide reasonable assurance that the firm as a whole will conform to auditing standards. This helps ensure the quality of the audit work performed and helps to maintain the integrity of the audit profession. The other choices are incorrect as they do not accurately reflect the reasons for establishing and following quality control policies and procedures.

A Firm of Independent Auditors Must Establish and Follow Explicit