For each of the following quality control procedures taken from the quality control manual of a medium-sized regional public accounting firm, identify the applicable element of quality control from Table 1-2

a. Appropriate accounting and auditing research requires adequate technical reference library facilities. Each practice office must maintain minimal facilities including a list of individuals within the firm who have specialized knowledge of various industries to help ensure an awareness of problems unique to specific industries. In addition, an extensive library of industry auditing material is maintained.

b. Each audit engagement of the firm is directed by a partner and, in most instances, a manager of the firm. On every engagement, an attempt is made to maintain a continuity of personnel on a year-to-year basis.

c. When prospective employees are interviewed by campus recruiters and are deemed to possess the potential for employment, they will be further screened by a practice office interview pursuant to the firm's procedure for practice office visitation. Practice office partners make the final hiring decisions pursuant to the guidelines established by the director of personnel.

d. At all stages of any engagement, effort is made to involve professional staff at appropriate levels in the accounting and auditing decisions. Various approvals of the manager or senior accountant are obtained throughout the audit.

e. No employee will have any direct or indirect financial interest, association, or relationship (e.g., a close relative serving a client in a decision-making capacity) not dis¬ closed that might be adverse to the firm's best interest.

f. Each office of the firm shall be visited on at least an annual basis by review persons selected by the senior standards partner. The procedures to be undertaken by the reviewers are illustrated in the office review pro¬ gram.

g. A closing conference including all staff will be held and those in attendance shall sign the checklist indicating they have reviewed certain points with the standards partner.
h. Existing clients of the firm are reviewed on a continuing basis by the engagement partner. Termination may result if circumstances indicate there is a reason to question the integrity of management or our independence, or if accounting and auditing differences of opinion cannot be reconciled. Doubts concerning whether the client- auditor relationship should be continued must be promptly discussed with the senior standards partner.
i. Individual partners submit the nominations of those per¬ sons whom they wish to be considered for partners. To become a partner, an individual must have exhibited a high degree of technical competence, possess integrity, motivation, judgment, and a desire to help the firm progress through the efficient dispatch of the job responsibilities to which he or she is assigned.
j. Through our continuing employee evaluation and counselling program, and through the quality control review procedures as established by the firm, educational needs are reviewed and formal staff training programs modified to accommodate changing needs. At the conclusion of practice office reviews, apparent accounting and auditing deficiencies are summarized and reported to the firm's standards committee.

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TABLE 1-2 FIVE ELEMENTS OF QUALITY CONTROL * ELEMENT Independence, integrity, and objectivity Personnel management SUMMARY OF REQUIREMENTS All personnel on engagements should maintain independence in fact and in appearance, perform all professional responsibilities with integrity, and maintain objectivity in performing their professional responsibilities. Policies and procedures should be established to provide the firm with reasonable assurance that: All new personnel should be qualified to perform their work competently. Work is assigned to personnel who have adequate technical training and proficiency. All personnel should participate in continuing professional education and professional development activities that enable them to fulfill their assigned responsibilities. Personnel selected for advancement have the qualifications necessary for fulfillment of their assigned responsibilities. EXAMPLE OF A PROCEDURE Each partner and employee must answer an "independence questionnaire" annually, dealing with such things as stock ownership and membership on boards of directors. Each professional must be evaluated on every engagement using the firm's individual engagement evaluation report.