A CPA firm would provide itself reasonable assurance of meeting its responsibility to offer professional services that conform with professional standards by
A)establishing an understanding with each client concerning individual responsibilities in a signed engagement letter.
B)assessing the risk that errors and fraud may cause the financial statements to contain material misstatements.
C)developing specific audit objectives to support management's assertions that are embodied in the financial statements.
D)maintaining a comprehensive system of quality control that is suitably designed in relation to its organizational structure.

Question

Quizplus · Accepted Answer

A comprehensive system of quality control that is suitably designed in relation to its organizational structure is the best option for a CPA firm to provide reasonable assurance that its services conform with professional standards. Such a system would include policies and procedures for monitoring and controlling the quality of services provided, as well as ensuring that the firm's personnel are properly trained and have the necessary skills and knowledge to perform their work. Establishing an understanding with clients, assessing the risk of errors and fraud, and developing audit objectives are all important components of an audit engagement, but they do not in themselves provide reasonable assurance that the firm's services are in compliance with professional standards.

A CPA Firm Would Provide Itself Reasonable Assurance of Meeting