Quality Control Standards Flashcards

1
Q

Do the standard quality control standards apply to the whole portfolio or each engagement?

A

The portfolio

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2
Q

Do quality control standards apply to tax or consulting services?

A

No because it is not for public interest

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3
Q

Quality control involve reasonable assurance regarding?

A

Compliance with professional standards and regulatory requirements

The reports issued are appropriate

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4
Q

What are the 6 elements of quality control system?

A

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

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5
Q

Who has the responsibility of quality control at the engagement level?

A

The engagement partner

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6
Q

Define engagement quality review?

A

Process to provide an objective evaluation BEORE the report is issued for the decisions made and conclusions reached.

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7
Q

Are engagement quality reviews required for all engagements?

A

No, only when the firm thinks it is reasonable under certain circumstances

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8
Q

What should the auditor document?

A

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
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