Which method is NOT a way for firms to limit their liability for poor quality control?

Prepare for the ACA ICAEW Audit and Assurance Exam. Study with our quiz, featuring multiple choice questions and detailed explanations. Get ready to ace the test!

The method of setting up a public relations campaign is not a way for firms to limit their liability for poor quality control. Instead, public relations campaigns are typically designed to manage a company's image and communicate effectively with the public, especially in times of crisis or when addressing negative perceptions. While a strong public relations strategy can mitigate reputational damage and potentially lessen the impact of criticism related to quality control, it does not provide any legal limitation on financial liability stemming from poor service or product quality.

In contrast, professional indemnity insurance offers financial protection against claims made by clients for professional negligence, effectively capping the firm's financial exposure. Limited liability partnerships provide a legal framework that protects individual partners from being personally liable for the debts and liabilities of the partnership, including those arising from poor quality control. Liability caps are agreements that limit the maximum amount that a firm can be held liable for, thus directly addressing financial liability in the context of their professional duties.

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