The following questions concern quality management standards. Choose the best response.

Question content area bottom

Part $1$

a$.$ The nature and extent of a public accounting$$ firm's $($PA$)$ system of quality control management depend on which of the$$ following?

The PA

$$Firm$\text{'}$s Size

The Nature of the

PA$$ Firm's Practice

$$Cost$-$benefit

Considerations

$1.$

Yes Yes $$Yes

$2.$

Yes Yes $$No

$3.$

Yes No $$Yes

$4.$

No Yes $$Yes

Part $2$

b$.$ One purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to

$1.$

enable the PA firm to attest to the reliability of the client.

$2.$

satisfy the PA$$ firm's duty to the public concerning the acceptance of new clients.

$3.$

provide reasonable assurance that the integrity of the client is considered.

$4.$

anticipate before performing any field work whether an unqualified opinion can be issued.