Auditing and Assurance Services. PLEASD ANSWER THE ATTACHED DOCUMENTS.
14 - 1 TRUE OR FALSE indicate whether the below statements are true or false. It is the responsibility of the firm to establish its system of quality control. Each individual partner or staff has a personal responsibility for quality. ; One of the drivers of audit quality is the skills and personal qualities of the audit partners and staffs. 4. The firm should obtain written confirmation of compliance with its policies and procedures on independence from all firm personnel on a quarterly basis. 5. Industry knowledge of client personnel is one of the considerations when assessing whether to accept an engagement. 6. Deciding whether to continue a client relationship includes consideration of significant matters that have arisen during the current or previous engagements. 7. The firm should establish policies and procedures designed to provide it with limited assurance that it has sufficient personnel with the capabilities, competence, and commitment to ethical principles.Chapter 14 - Quality Control for Audit and Assurance Firms 8. Technical trainings help develop capabilities and competence of personnel as opposed to non-technical trainings. 9. E-learnings or electronic learnings are also considered tools for the continuing professional development of firm personnel. 10. The ability to apply professional judgment is one of the criteria in assessing the capabilities and competence of staffs. 14 -2 TRUE OR FALSE 1. It is essential that a majority of the engagement team understands the objectives of the work they are to perform. 2. Review responsibilities are determined on the basis of date of hiring of engagement team members. 3. Consultations are made for matters other than accounting and auditing (e.g., property valuation) as practitioners are expected to have expertise on this field already. 4. Differences of opinion within the engagement team must be resolved before report issuance. 5. Engagement quality control review is required for all audits of financial statements of listed entities. 6. The sign-offs of the engagement quality control reviewer on the audit file signifies his concurrence to share with the responsibility of the engagement partner over the engagement. 7. Inspection relates to the procedures designed to provide evidence of compliance by engagement teams with the firm's quality control policies and procedures for its ongoing engagements. 8. Engagements selected for inspection include at least one engagement for each engagement partner over a calendar year. 9. Deficiencies noted during the inspection process should be communicated to those charged with governance or management of the client. 10. The firm should establish clearly defined channels for firm personnel to raise any concerns without fear of reprisals. 11. Smaller firms may use more informal methods for the documentation of its system of quality control. 12. The firm should implement quality control procedures that are applicable to the individual audit engagement.Chapter 14 - Quality Control for Audit and Assurance Firms 13. The engagement partner should take responsibility for the overall quality on each audit engagement to which that partner is assigned 14. For recurring audits, unresolved differences of opinion must be documented in the audit file for reference and resolution by the succeeding year's engagement team. 15. Issues identified with respect to the compliance with relevant ethical requirements should be documented only if not yet resolved
