PSQC

Question 1

What do you call the date selected by the practitioner to date the report?

Answer 1

Date of report

Question 2

As per PSQC, what is the objective of the firm?

Answer 2

The objective of the firm is to establish and maintain a system of quality control to provide it with reasonable assurance that:

(a) The firm and its personnel comply with professional standards and regulatory and legal requirements; and
(b) Reports issued by the firm or engagement partners are appropriate in the circumstances.

Question 3

The record of work performed, results obtained, and conclusions the practitioner reached (terms such as “working papers” or “workpapers” are sometimes used).

Answer 3

Engagement documentation

Question 4

The partner or other person in the firm who is responsible for the engagement and its performance, and for the report that is issued on behalf of the firm, and who, where required, has the appropriate authority from a professional, legal or regulatory body.

Answer 4

Engagement partner

Question 5

Systems of quality control in compliance with this PSQC are required to be established by December 1, 2009.

Answer 5

False

-December 15, 2009

Question 6

A process designed to provide an objective evaluation, on or before the date of the report, of the significant judgments the engagement team made and the conclusions it reached in formulating the report.

Answer 6

Engagement quality control review

Question 7

A partner, other person in the firm, suitably qualified external person, or a team made up of such individuals, none of whom is part of the engagement team, with sufficient and appropriate experience and authority to objectively evaluate the significant judgments the engagement team made and the conclusions it reached in formulating the report.

Answer 7

Engagement quality control reviewer

Question 8

All partners and staff performing the engagement, and any individuals engaged by the firm or a network firm who perform procedures on the engagement.

Answer 8

Engagement team

Question 9

A sole practitioner, partnership or other entity of professional accountants

Answer 9

Firm

Question 10

In relation to completed engagements, procedures designed to provide evidence of compliance by engagement teams with the firm’s quality control policies and procedures.

Answer 10

Inspection

Question 11

An entity whose shares, stock or debt are quoted or listed on a recognized stock exchange, or are marketed under the regulations of a recognized stock exchange or other equivalent body.

Answer 11

Listed entity

Question 12

A process comprising an ongoing consideration and evaluation of the firm’s system of quality control, including a periodic inspection of a selection of completed engagements, designed to provide the firm with reasonable assurance that its system of quality control is operating effectively.

Answer 12

Monitoring

Question 13

A firm or entity that belongs to a network.

Answer 13

Network firm

Question 14

A larger structure:

(i) That is aimed at cooperation, and
(ii) That is clearly aimed at profit or cost-sharing or shares common ownership, control or management, common quality control policies and procedures, common business strategy, the use of a common brand name, or a significant part of professional resources.

Answer 14

Network

Question 15

Any individual with authority to bind the firm with respect to the performance of a professional services engagement.

Answer 15

Partner

Question 16

Partners and staff.

Answer 16

Personnel

Question 17

AASC Engagement Standards, as defined in the AASC’s Preface to the Philippine Standards on Quality Control, Auditing, Review, Other Assurance and Related Services, and relevant ethical requirements.

Answer 17

Professional standards

Question 18

Ethical requirements to which the engagement team and engagement quality control reviewer are subject, which ordinarily comprise Parts A and B of the Code of Ethics for Professional Accountants in the Philippines (Philippine Ethics Code) together with national requirements that are more restrictive.

Answer 18

Relevant ethical requirements

Question 19

Professionals, other than partners, including any experts the firm employs.

Answer 19

Staff

Question 20

An individual outside the firm with the competence and capabilities to act as an engagement partner, for example a partner of another firm, or an employee (with appropriate experience) of either a professional accountancy body whose members may perform audits and reviews of historical financial information, or other assurance or related services engagements, or of an organization that provides relevant quality control services.

Answer 20

Suitably qualified external person

Question 21

Elements of a System of Quality Control
16. The firm shall establish and maintain a system of quality control that includes policies and procedures that address each of the following elements:

Answer 21

(a) Leadership responsibilities for quality within the firm.
(b) Relevant ethical requirements.
(c) Acceptance and continuance of client relationships and specific engagements.
(d) Human resources.
(e) Engagement performance.
(f) Monitoring.

Question 22

The firm shall establish policies and procedures such that any person or persons assigned operational responsibility for the firm’s system of quality control by the firm’s chief executive officer or managing board of partners has sufficient and appropriate experience and ability, and the necessary authority, to assume that responsibility.

Answer 22

True.