Question

Identify the applicable element of quality control:

c. all potential new clients are reviewed before acceptance; the review includes consultation with predecessor auditors, and background checks; all new clients are approved by the firm management committee, including assessing whether the firm has the technical competence to complete the engagement

Answer 1

The applicable element of quality control is the review of potential new clients before acceptance by the firm management committee.

Step-by-step explanation:

The applicable element of quality control in this case is the review of potential new clients before acceptance.

This review process includes consultation with predecessor auditors, conducting background checks, and assessing whether the firm has the technical competence to complete the engagement.

All new clients are approved by the firm management committee.