1. Staff accountants’ working papers are reviewed within one week of being completed. 2. The partner in charge annually selects at random five engagements and evaluates whether quality control procedures were followed. 3. No uncertainty must exist as to whether a new client is a going concern. 4. To be in-charge auditor on audits involving more than four hundred work hours, staff must have previously worked on an engagement in the industry. 5. New staff accountants must be eligible to sit for the CPA exam. 6. In-charge accountants must have passed the CPA exam. 7. As they are issued, new PASs are discussed with staff. 8. A technical assistance staff is available to answer accounting and auditing questions. 9. Staff must sign a statement annually that indicates their stock ownership. Required: a. State the quality control element on which the policy relates
Cases:
1. Staff accountants’ working papers are reviewed within one week of being completed.
2. The partner in charge annually selects at random five engagements and evaluates whether quality control procedures were followed.
3. No uncertainty must exist as to whether a new client is a going concern.
4. To be in-charge auditor on audits involving more than four hundred work hours, staff must have previously worked on an engagement in the industry.
5. New staff accountants must be eligible to sit for the CPA exam.
6. In-charge accountants must have passed the CPA exam.
7. As they are issued, new PASs are discussed with staff.
8. A technical assistance staff is available to answer accounting and auditing questions.
9. Staff must sign a statement annually that indicates their stock ownership.
Required:
a. State the quality control element on which the policy relates
b. State the objective/purpose of each policy.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
