One of a CPA firm's basic objectives is to provide professional services that conform with professional standards. Reasonable assurance of achieving this basic objective is provided through:

Question

Quizplus · Accepted Answer

Choice "A" is correct. A system of quality control establishes policies and procedures that provide reasonable assurance of conforming with professional standards. Choice "B" is incorrect. Peer review is a process whereby one CPA firm reviews another. It can be part of the monitoring element of quality control, but it does not (in and of itself) provide reasonable assurance that a CPA firm will comply with professional standards. Choice "C" is incorrect. The objective of continuing professional education (CPE) is to increase the competency of auditors. Professional development activities such as this are part of the personnel management element of quality control, but they do not (in and of themselves) provide reasonable assurance that a CPA firm will comply with professional standards. Choice "D" is incorrect. Compliance with the standards of reporting (part of the ten generally accepted auditing standards) helps ensure that audit results are appropriately communicated to the users of financial statements, but such compliance does not provide assurance regarding conformity with professional standards.

One of a CPA Firm's Basic Objectives Is to Provide