financial statement audits-quality control standards

Question 1

the Statement of quality control standards are issued by

Answer 1

AICPAs ASB

Question 2

SQCS applies to the ______

Answer 2

whole portfolio of accounting and auditing engagements.

Question 3

SQCS do not apply to ____

Answer 3

tax or consulting services

Question 4

6 elements of a firms quality control system

Answer 4

1. leadership responsibilities-Tone at the top
2. relevant ethical requirements-especially related to independence issues.
3. acceptance and continuance of clients and specific engagements
4. Human Resources (recruiting and hiring, assignments, professional development & continuing education, and evaluation, promotions and compensation issues)
5. engagement performance (consolation with others, compliance with policies/standards)
6. monitoring - quality control is not a one time issue. it requires continuous assessment over time.

Leahem-the 6th element

Question 5

an individual audit engagement is governed by GAAS where a CPA firms collective portfolio of accounting and auditing services is governed by the AICPA’s ____.

Answer 5

SQCS. (Quality control standards)

Question 6

A firm is required to establish an appropriate system of quality control to provide reasonable assurance of conforming with professional standards.

Answer 6

f