B. Option B
C. Option C
D. Option D

Answer(s): A
Explanation:
Choice "a" is correct. When assigning personnel to an engagement, the firm should consider the
following factors in achieving a balance of engagement manpower requirements, personnel
skil s, and individual development and utilization: 1) engagement size and complexity, 2)
personnel availability, 3) special expertise required, 4) timing of the work to be performed, 5)
continuity and periodic rotation of personnel, and 6) opportunities for on-the-job training.
Choices "b", "c", and "d" are incorrect, based on the above Explanation.
QUESTION: 180
After fieldwork audit procedures are completed, a partner of the CPA firm who has not been
involved in the audit performs a second or wrap-up review of the audit documentation. This
second review usually focuses on:

A. The fair presentation of the financial statements in conformity with GAAP.
B. Fraud involving the client's management and its employees.
C. The materiality of the adjusting entries proposed by the audit staff.
D. The communication of internal control weaknesses to those charged with governance.

Answer(s): A
Explanation:
Choice "a" is correct. The primary purpose of a second partner review is to ensure that the
financial statements are presented in accordance with GAAP.
Choice "b" is incorrect. A search for fraud is typically not part of a second partner review. Choice
"c" is incorrect. The materiality of adjusting entries proposed by the audit staff may be reviewed
by a second partner, but they are not the primary focus of such a review. Choice "d" is incorrect.
The communication of internal control weaknesses to those charged with governance is not a
primary focus of a second partner review.
QUESTION: 181
The primary purpose of establishing quality control policies and procedures for deciding whether
to accept a new client is to:

A. Enable the CPA firm to attest to the reliability of the client.
B. Satisfy the CPA firm's duty to the public concerning the acceptance of new clients.
C. Minimize the likelihood of association with clients whose management lacks integrity.
D. Anticipate before performing any fieldwork whether an unqualified opinion can be expressed.

Answer(s): C
Explanation:
Choice "c" is correct. Policies and procedures should be established for deciding whether to
accept or continue a client in order to minimize the likelihood of association with a client whose
management lacks integrity.
Choice "a" is incorrect. Suggesting that there should be procedures to decide whether to accept
a client does not imply that a firm vouches for the integrity or reliability of a client. Choice "b" is

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