In pursuing its quality control objectives with respect to acceptance of a client, an audit firm is not likely to:
A)make enquiries of the proposed client's legal adviser.
B)review financial reports of the proposed client.
C)make enquiries of previous auditors.
D)review the personnel practices of the proposed client.

Question

Quizplus · Accepted Answer

Reviewing the personnel practices of the proposed client is not typically a part of the audit firm's quality control procedures in accepting a client. The focus is more on understanding the client's business, financial stability, and integrity, which can be assessed through enquiries of legal advisers, reviewing financial reports, and making enquiries of previous auditors.

In Pursuing Its Quality Control Objectives with Respect to Acceptance