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Quiz 6 Chap 5

The quality control policy of a CPA firm that aims to ensure personnel have attained and maintained the required technical standards and professional competence to fulfill their responsibilities with due care is the skills and competence policy. GAAS and PSA should be viewed as the minimum standards of performance that must be achieved on each audit engagement. Monitoring, as an element of quality control policies of a CPA firm, requires providing reasonable assurance that the firm's other quality control policies and procedures are effectively operating.

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97 views

Quiz 6 Chap 5

The quality control policy of a CPA firm that aims to ensure personnel have attained and maintained the required technical standards and professional competence to fulfill their responsibilities with due care is the skills and competence policy. GAAS and PSA should be viewed as the minimum standards of performance that must be achieved on each audit engagement. Monitoring, as an element of quality control policies of a CPA firm, requires providing reasonable assurance that the firm's other quality control policies and procedures are effectively operating.

Uploaded by

CJ Granada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

A basic objective of a CPA firm is to provide professional services that conform with professional
standards. Reasonable assurance of achieving this basic objective is provided through

c. A system of quality controls.

2. The third general standards states that due care is to be exercised in the performance of the
examination. This standard should be interpreted to mean that a CPA who undertakes an engagement
assumes a duty to perform.

d. As a professional possessing the degree of skill commonly possessed by others in the field.

3. A CPA should comply with applicable generally accepted auditing standards on every engagement a.
Without exception

4. The firm is to be staffed by personnel who have attained and maintained the technical standards and
professional competence required to enable them to fulfill their responsibilities with due care is the
objective of what quality control policy?

b. Skills and Competence

5. In pursuing its quality control objectives with respect to assigning personnel to engagements, a public
accounting firm may use policies and procedures such as

b. Requiring timely identification of the staffing requirements of specific engagements so that enough
qualified personnel can be made available.

6. Which of the following is not likely a quality control procedure on consultation?

c. Assigns an appropriate person or persons to be responsible for assigning personnel to audits.

7. Generally Accepted Auditing Standards (GAAS) and Philippine Standards on Auditing (PSA) should be
looked upon by practitioners as:

c. Minimum standards of performance which must be achieved on each audit engagement.

8. The fourth standard of reporting requires the auditor’s report to contain either an expression of
opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion
cannot be expressed. The objective of the fourth standard is to prevent

c. Misinterpretations regarding the degree of responsibility the auditor is assuming

9. A CPA firm’s personnel partner periodically studies the CPA firm’s personnel advancement experience
to ascertain whether individuals meeting stated criteria are assigned increased degrees of responsibility.
This is evidence of the CPA firm’s adherence to prescribed standards of

a. Quality control.

10. The first general standard requires that the audit of financial statements be performed by a person
or persons having adequate technical training and

c. Proficiency as an auditor, which likely has been acquired from previous experience.
11. In connection with the element of professional development, a CPA firm’s system of quality control
should ordinarily provide that all personnel

a. Have the knowledge required to enable them to fulfill responsibilities assigned.

12. Which of the following is not required by the Generally Accepted Auditing Standards that states that
due professional care is to be exercised in the performance of the audit?

Responsibility for losses because of errors of judgment

13. The first standard of fieldwork, which states that the work is to be adequately planned, and
assistants, if any, are to be properly supervised, recognizes that

Early appointment of the auditor is advantageous both to the auditor and to the client.

14. Which of the following best describes what is meant by Generally Accepted Auditing Standards?

Measures of the quality of the auditor’s performance

15. An auditor need not abide by an auditing standard if the auditor believes that

a. The amount is immaterial b. The requirement of the standard is impractical to perform c. The
requirement of the standard is impossible to perform d. Any of the three above is correct.

16. Which of the following is mandatory if the auditor is to comply with generally accepted auditing
standards?

a. Possession by the auditor of adequate technical training.

17. With respect to the auditor’s planning of a year-end audit, which of the following statements is
always true?

d. It is an acceptable practice to carry out part of the audit at interim dates.

18. The firm’s evaluation of the performance of its personnel and advising them of their progress is a
quality control procedure that relates to

b. Advancement

19. Within the context of quality control, the primary purpose of continuing professional education and
training activities, is to enable a CPA firm to provide personnel within the firm with:

c. Knowledge required to fulfill assigned responsibilities and to progress within the firm.

20. Monitoring, as an element of quality control policies of a firm, requires:

a. Providing reasonable assurance that the firm’s other quality control policies and procedures are
effectively operating.

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