Where the fees from an audit client are more than 15% of total fees, the public accounting firm should:
A) ensure that adequate quality control procedures are in place.
B) ensure that the audit work is reviewed by an accountant, not a member of the audit team.
C) ensure that all members of the audit team are independent, both in fact and in appearance.
D) ensure adequate quality control procedures are in place and that the audit work is reviewed by an accountant, not a member of the audit team.

Question

Quizplus · Accepted Answer

When the fees from an audit client are more than 15% of total fees, the public accounting firm should ensure both adequate quality control procedures are in place and that the audit work is reviewed by an accountant, not a member of the audit team. This helps ensure both quality and independence in the audit. Option A alone may not be sufficient, while option B alone may not address quality control concerns. Option C is also important but does not address quality control procedures.

Where the Fees from an Audit Client Are More Than