Question

One of a CPA firm’s basic objectives is to provide professional services that conform

with professional standards. Reasonable assurance of achieving this objective is provided through
(1) a system of quality control.
(2) a system of peer review.
(3) continuing professional education.
(4) compliance with generally accepted reporting standards.

Answer 1

A CPA firm's basic objective to provide professional services that conform with professional standards is best achieved through a system of quality control. This system establishes policies and procedures for the consistent application of standards, ensuring quality service and adherence to ethical practices.

Step-by-step explanation:

The objective of a CPA firm to provide services that conform to professional standards is crucial to ensure quality and ethical practice in the accounting profession. Among the options provided, the primary system that provides reasonable assurance of achieving this objective is:

1. A system of quality control aimed at ensuring that the firm consistently applies professional standards and practices.
2. A system of peer review, which can help in evaluating the quality of a firm's work by other independent professionals.
3. Continuing professional education, which ensures that the professionals remain up-to-date with the latest standards and practices.
4. Compliance with generally accepted reporting standards, which serves as a foundational requirement for the accounting work produced.

However, it is principally the system of quality control that establishes the necessary policies and procedures to guide a CPA firm towards the consistent application of professional standards and quality services.