C involving an additional professional accountant in

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C. Involving an additional professional accountant in the firm who was not a member of the assurance team to review the work or otherwise advise as necessary. D. Withdraw from, or refuse to accept, the assurance engagement. 47. When a close family member of a member of the assurance team is a director, an officer, or an employee of the assurance client in a position to exert direct and significant influence over the subject matter information of the assurance engagement, threats to independence may be created. If the threats are other than clearly insignificant, which of the following safeguards can be applied to reduce the threats to an acceptable level? I. Removing the individual from the assurance team. II. Where possible, structuring the responsibility of the assurance team so that the professional does not deal with matters that are within the responsibility of the close family member. III. Policies and procedures to empower staff to communicate to senior levels within the firm any issue of independence and objectivity that concerns them. A. I and II only B. II and III only C. I and III only D. I, II, and III 48. Which of the following threats to independence may be created by family and personal relationships between a member of the assurance team and a
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director, an officer, or an employee of the assurance client in a position to exert direct and significant influence over the subject matter information of the assurance engagement? A. Self-interest, familiarity or intimidation threats B. Self-review, familiarity, or advocacy threats C. Advocacy, familiarity or self-review threats D. Self-interest, advocacy or self-review threats 49. Which of the following are elements of a CPA firm’s quality control that should be considered in establishing its quality control policies and procedures? A. Human resources B. Ethical requirements C. Engagement performance D. Human resources, ethical requirements and engagement performance Page 9 50. The primary purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to A. Anticipate before performing any fieldwork whether an unqualified opinion can be expressed. B. Enable the CPA firm to attest to the reliability of the client. C. Satisfy the CPA firm’s duty to the public concerning the acceptance of new clients. D. Minimize the likelihood of association with clients whose management lacks integrity. 51. The nature, timing, and extent of an audit firm’s quality control policies and procedures depend on A. The CPA firm’s size and the nature of CPA firms practice B. The CPA firm’s size, the nature of CPA firm’s practice and appropriate cost-benefit considerations C. The CPA firm’s size and appropriate cos-benefit considerations D. None of these 52. Who should take responsibility for the overall quality on each audit engagement?
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