The following questions relate to quality control and peer review. Select the best response. 

a. A firm of CPAs may use policies and procedures such as notifying professional personnel as to the names of audit clients having publicly held securities and confirming periodically with such personnel that prohibited relations do not exist. This is done to achieve effective quality control in which of the following areas? 

1. Acceptance and continuance of clients. 

2. Assigning personnel to engagements. 

3. Independence. 

4. Inspection. 

b. In connection with the element of inspection, a CPA firm's system of quality control should ordinarily provide for the maintenance of 

1. A file of minutes of staff meetings. 

2. Updated personnel files. 

3. Documentation to demonstrate compliance with its policies and procedures. 

4 Documentation to demonstrate compliance with peer review directives. 

c. A CPA establishes quality control policies and procedures for deciding whether to accept a new client or continue to perform services for a current client. The primary purpose for establishing such policies and procedures is 

1. To enable the auditor to attest to the integrity or reliability of a client. 

2. To comply with the quality control standards established by regulatory bodies. 

3. To lessen the exposure to litigation resulting from failure to detect irregularities in client financial statements. 

4. To minimize the likelihood of association with clients whose management lacks integrity. 

d. Williams & Co., a large international CPA firm, is to have an "external peer review." The peer review will most likely be performed by 

1. Employees and partners of Williams & Co. who are not associated with the particular audits being reviewed. 

2. Audit review staff of the Securities and Exchange Commission. 

3. Audit review staff of the American Institute of Certified Public Accountants. 

4 Employees and partners of another CPA firm. 

e. Which of the following is not an element of quality control? 

1. Documentation. 

2. Inspection. 

3. Supervision. 

4. Consultation.