A basic objective of a CPA firm is to provide professional services that conform to professional standards.Reasonable assurance of achieving this basic objective is provided through
A) compliance with generally accepted reporting standards.
B) a system of quality control.
C) a system of peer review.
D) continuing professional education.

Question

Quizplus · Accepted Answer

A system of quality control provides the necessary framework for a CPA firm to ensure that all professional services are performed in accordance with professional standards. It includes policies and procedures that address the firm's leadership and personnel management, acceptance and continuance of clients, engagement performance, monitoring, and addressing noncompliance. Compliance with generally accepted reporting standards (A) is necessary but not sufficient to ensure overall quality of services. Peer review (C) and continuing professional education (D) are components of quality control but not the overarching framework.

A Basic Objective of a CPA Firm Is to Provide