What is a purpose of the acceptance and continuance of client relationships and specific engagements element of quality control?
A)Guarantee that firms do not associate with clients whose management lacks integrity.
B)Provide reasonable assurance that firms do not associate with clients whose management lacks integrity.
C)Guarantee that firms will not be sued as a result of association with a client.
D)Provide reasonable assurance that firms will not be sued as a result of association with a client.

Question

Quizplus · Accepted Answer

The purpose of the acceptance and continuance of client relationships and specific engagements element of quality control is to provide reasonable assurance that firms do not associate with clients whose management lacks integrity. This helps to ensure that the firm maintains a high level of professional standards and ethics, and reduces the risk of legal or reputational damage. While it is not possible to guarantee that all clients will behave ethically, this element of quality control helps to minimize the risk of working with clients who are likely to engage in unethical behavior.

What Is a Purpose of the Acceptance and Continuance of Client