A CPA firm’s quality control procedures pertaining to the acceptance of a prospective audit client would most likely include (A) Inquiry of management as to whether disagreements between the predecessor auditor and prospective client were resolved satisfactorily. (B) Consideration of whether sufficient competent evidential matter may be obtained to afford a reasonable basis for an opinion. (C) Inquiry of third parties, such as the prospective client’s bankers and attorneys, about information regarding the prospective client and its management. (D) Consideration of whether the internal control structure is sufficiently effective to permit a reduction in the required substantive tests. Choose the letter of your choice and explain your answer
A CPA firm’s quality control procedures pertaining to the acceptance of a prospective audit client would most likely include
(A) Inquiry of management as to whether disagreements between the predecessor auditor and prospective client were resolved satisfactorily.
(B) Consideration of whether sufficient competent evidential matter may be obtained to afford a reasonable basis for an opinion.
(C) Inquiry of third parties, such as the prospective client’s bankers and attorneys, about information regarding the prospective client and its management.
(D) Consideration of whether the internal control structure is sufficiently effective to permit a reduction in the required substantive tests.
Choose the letter of your choice and explain your answer
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