A CPA firm establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client.The primary purpose for establishing such policies and procedures is:
A)To enable the auditor to attest to the integrity or reliability of a client.
B)To comply with the quality control standards established by regulatory bodies.
C)To minimize the likelihood of association with clients whose managements lack integrity.
D)To lessen the exposure to litigation resulting from failure to detect fraud in client financial statements.

Question

Quizplus · Accepted Answer

The primary purpose of establishing quality control policies and procedures for client acceptance and continuance is to minimize the likelihood of association with clients whose managements lack integrity. This helps ensure the CPA firm maintains its reputation and reduces the risk of being involved in audits or engagements where there might be ethical or legal issues due to the client's management behavior.

A CPA Firm Establishes Quality Control Policies and Procedures for Deciding