According to the Financial Reporting Council (FRC),when is the culture of an audit firm likely to provide a positive contribution to audit quality?
A)When the leadership of the audit firm ensures partners and other staff have sufficient time and resources to deal with difficult issues as they arise.
B)When the leadership of the audit firm ensures robust systems for client acceptance and continuation based on ability to pay fees.
C)When the leadership of the audit firm creates an environment where achieving efficiency is valued,invested in and rewarded.
D)When the leadership of the audit firm ensures financial considerations drive actions.

Question

Quizplus · Accepted Answer

According to the FRC, a positive culture in an audit firm is likely to contribute to audit quality when the leadership of the firm ensures partners and staff have sufficient time and resources to deal with difficult issues as they arise. This implies that the firm prioritizes quality and ethical considerations over efficiency and financial considerations. Option B focuses on financial considerations, while option C emphasizes efficiency, which may compromise audit quality. Option D is clearly not ideal for promoting audit quality.

According to the Financial Reporting Council (FRC),when Is the Culture