The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to
A. provide reasonable assurance that personnel are adequately trained to fulfill their responsibilities.
B. monitor the risk factors concerning misstatements that arise from the misappropriation of assets.
C. document objective criteria for the CPA firm’s peer review.
D. minimize the likelihood of associating with a client whose management may lack integrity.
Answer:D
The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to
A. provide reasonable assurance that personnel are adequately trained to fulfill their responsibilities. B. monitor the risk factors concerning misstatements that arise from the misappropriation of assets. C. document objective criteria for the CPA firm’s peer review. D. minimize the likelihood of associating with a client whose management may lack integrity.