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

Question

Quizplus · Accepted Answer

When the fees from an audit client are more than 15% of total fees, the public accounting firm should ensure that adequate quality control procedures are in place and also ensure that the audit work is reviewed by an accountant who is not a member of the audit team. This is to maintain objectivity and independence in the audit process. While it is important for all members of the audit team to be independent, this alone may not be sufficient to address potential threats to objectivity. Therefore, having quality control procedures in place and having the audit work reviewed by an independent accountant can provide an additional layer of assurance.

Where the Fees from an Audit Client Are More Than