The primary purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to:
A)enable the audit firm to attest to the reliability of the client.
B)satisfy the audit firm's duty to the public concerning the acceptance of new clients.
C)minimise the likelihood of association with clients whose management lacks integrity.
D)anticipate before performing any fieldwork whether an unmodified opinion can be expressed.

Question

Quizplus · Accepted Answer

Quality control policies and procedures for accepting new clients are primarily established to minimize the risk of association with clients whose management lacks integrity. This ensures that the auditor is not associated with clients who may compromise their independence, objectivity, and professional skepticism. While the other options may be relevant in quality control, they are not the primary purpose of establishing policies and procedures for accepting new clients.

The Primary Purpose of Establishing Quality Control Policies and Procedures