ency, executive accountability and investor protection (Oanaet.,al, 2013). Section 201 of Sarbanes-Oxley Act (2002) has created explicit categories of non-audit services that, if provided to an audit client, are now deemed to impair the auditor’s independence including non-auditing services such as company’s corporate tax return and directors’ personal tax return services(Chunet.,al, 2013).................
c) Client acceptance procedures are a key element of quality control. Describe the risks for an audit firm which a system of quality control is designed to mitigate.
MURRAY(2014) has stated that client acceptance decisions are critical to the success of public accounting firms. Firms are interested in obtaining and retaining clients, but do not wish to be associated with overly risky clients.
Elements of the Quality control are related to independence, integrity, objective, personnel management, acceptance and continuation of clients and engagement, engagement performance, and monitoring.
Ayers&Kaplan (1998) stated that “Client acceptance and continuance procedures should focuson independence considerations, possible conflicts of interestand whether the firm is competent to perform the engagement,and has the capabilities, including time and resources to doso”....................
Reference lis