A major purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to:
A)enable the CPA firm to attest to the reliability of the client.
B)satisfy the CPA firm's duty to the public concerning the acceptance of new clients.
C)minimize the likelihood of association with clients whose management lacks integrity.
D)anticipate before performing any fieldwork whether an unqualified opinion can be expressed.

Question

Quizplus · Accepted Answer

Quality control policies and procedures for accepting new clients are primarily aimed at identifying and minimizing the potential risks associated with association with clients whose management lack integrity. These policies and procedures help the CPA firm to ensure that the clients they take on have a reputation for following ethical business practices, which reduces the risk of the CPA firm being associated with fraudulent or unethical practices. While the other options may be important considerations in the acceptance of new clients, they are not the primary purpose of establishing quality control policies and procedures for this purpose.

A Major Purpose of Establishing Quality Control Policies and Procedures