An important element of a public accounting firm's system of quality control is the decision about client acceptance and retention.

Question

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Client acceptance and retention is a vital element of a public accounting firm's system of quality control as it helps in ensuring that the firm provides professional services to clients who have integrity, competence, and character. This helps prevent any issues regarding independence, conflicts of interest, or financial instability that might risk the firm's reputation or impair its ability to perform the engagement effectively.

An Important Element of a Public Accounting Firm's System of Quality