Quality Control Standards Flashcards
Do the standard quality control standards apply to the whole portfolio or each engagement?
The portfolio
Do quality control standards apply to tax or consulting services?
No because it is not for public interest
Quality control involve reasonable assurance regarding?
Compliance with professional standards and regulatory requirements
The reports issued are appropriate
What are the 6 elements of quality control system?
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- be careful of who you take on as a client. Only those where management have integrity
4) Human resources (recruiting & hiring, assignments, professional development & continuing education, and evaluation, proposition, 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
Who has the responsibility of quality control at the engagement level?
The engagement partner
Define engagement quality review?
Process to provide an objective evaluation BEORE the report is issued for the decisions made and conclusions reached.
Are engagement quality reviews required for all engagements?
No, only when the firm thinks it is reasonable under certain circumstances
What should the auditor document?
1) Issues including independence matters
2) Conclusions about acceptance/continuance of client relationships
3) Issues and conclusions related to consultations
The quality control reviewer:
- The required procedures have been performed
- The date the review was completed
- The reviewer is not aware of any unresolved issues