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73. In a system of quality control, leadership responsibilities for quality within the firm are best characterized by
A. basing personnel performance evaluations on the employees' ability to generate revenues from existing clients or by acquiring new clients. B. management's evaluation of the integrity and business reputation of the client. C. management's clear and consistent demonstration of its own commitment to quality control and high-quality work. D. assigning management responsibilities in such a manner that commercial considerations are the firm's top priority. 74. The audit failures of both Enron and WorldCom were examples in which the leadership responsibilities for quality work within the accounting firm were overshadowed by fears that losing a key client would
A. result in shareholder losses from reduced company profitability. B. require additional audit procedures and increase the fees paid by the companies to the accounting firm. C. negatively influence the results of the firm's inspection. D. negatively impact individual auditors' performance evaluations. 75. Which of the following is an example of the appropriate implementation of a system of quality control?
A. The firm requires all documents obtained during the audit to be destroyed immediately following the engagement to ensure the client's information remains confidential. B. The firm's quality control policies have evolved through the performance of audit procedures but are not formally developed or communicated to staff members. C. All firm employees must verbally confirm their compliance with the appropriate independence requirements before being assigned to an engagement. D. The firm uses manuals and standardized forms for audit documentation to help ensure engagement performance objectives and quality standards are met.
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