Which of the following best describes the role of an audit firm's quality control standards to provide guidance addressing client acceptance and continuance?
A) A standard framework should provide important benchmarks to be used by client companies to evaluate their own risk factors.
B) Representative legal cases should be documented whenever client company characteristics resemble fact patterns.
C) Policies and procedures should be in place for determining whether to accept or continue to perform an audit engagement.
D) A well-structured timeline and written communication plan should be in place for all proposal and decision processes.

Question

Quizplus · Accepted Answer

Quality control standards should provide policies and procedures for audit firms to follow when determining whether to accept or continue performing an audit engagement. This helps ensure that the audit firm is taking appropriate steps to manage risk and maintain quality in their services. Choices A, B, and D do not specifically address client acceptance and continuance.

Which of the Following Best Describes the Role of an Audit