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.

Question

Quizplus · Accepted Answer

The purpose of establishing quality control policies and procedures to accept or continue a client relationship is primarily to minimize the likelihood of associating with a client whose management may lack integrity. While the other options may also be included in quality control policies and procedures, they are not the primary purpose. A is related to training, B is related to monitoring of risk factors, and C is related to peer review documentation.

The Purpose of Establishing Quality Control Policies and Procedures to Accept