Policy and procedures governing the acceptance and continuance of client relationships are contained primarily in:
A) ASA 210.
B) ASA 220.
C) ASA 315.
D) ASA 620.

Question

Quizplus · Accepted Answer

Policy and procedures governing the acceptance and continuance of client relationships are primarily contained in ASA 220 Quality Control for an Audit of a Financial Statement and Other Historical Financial Information. ASA 220 provides guidance to firms on the establishment and maintenance of quality control policies and procedures related to the acceptance and continuance of client relationships, and the performance of audits and reviews of financial statements. ASA 210 covers the auditor's responsibility to agree on the terms of the engagement with management and those charged with governance, ASA 315 covers the auditor's responsibility to identify and assess the risks of material misstatement in the financial statements, and ASA 620 covers the application of materiality in planning and performing an audit.

Policy and Procedures Governing the Acceptance and Continuance of Client