EXERCISE Review the quality control standards of Abernethy and Chapman, and prepare a memo to Ms. Malott addressing the firm's policies. From the information provided, how does the firm appear to meet or not meet each of the quality control standards? If additional information is needed, state what information you would need to have to make the assessment. What recommendations for improvements do you have for the firm? Be sure to consider all of the elements of quality control as required by Standard of Quality Control Standards No. 7, A Firm's System of Quality Control, issued by the AICPA. The elements are (1) leadership responsibilities, (2) relevant ethical requirements, (3) acceptance and continuation of clients, (4) human xii resources, (5) engagement performance, and (6) monitoring. (See template "IntroCase-1.doc") APPLY YOUR RESEARCH Use library resources such as searchable databases to research the following topic. Write a report discussing marketing by public accounting firms. Indicate the reasons that marketing is permitted and the type of marketing (particularly advertising) that has occurred. Discuss the success that firms have achieved and the reaction of accountants to marketing, especially advertising. What are the restrictions on advertising by a CPA? CONSULTING PARTNER REVIEW The Prentice Hall website (www.pearsonhighered.com/arens) includes audio clipe prepared by the consulting partner on the audit team. This partner offers addi cal thinking about the subject material of the cases. You questions that require critical thinking ab ny material related to the clips, perform will listen to the clips. read any material related to the clips. Derfor additional research, and prepare additional memos or reports. as the consulting partner on the Lakeside Bob Zimmerman will be serving as the consulting partner In most of the subsequent cases, Mr. Zimmerman Company audit engagement in most of the subsequent cases. Mrzim hestions about the audit of the Lakeside Company will be asking you additional questions about eaudit of the Lakeside ce EXERCISE Review the quality control standards of Abernethy and Chapman, and prepare a memo to Ms. Malott addressing the firm's policies. From the information provided, how does the firm appear to meet or not meet each of the quality control standards? If additional information is needed, state what information you would need to have to make the assessment. What recommendations for improvements do you have for the firm? Be sure to consider all of the elements of quality control as required by Standard of Quality Control Standards No. 7, A Firm's System of Quality Control, issued by the AICPA. The elements are (1) leadership responsibilities, (2) relevant ethical requirements, (3) acceptance and continuation of clients, (4) human xii resources, (5) engagement performance, and (6) monitoring. (See template "IntroCase-1.doc") APPLY YOUR RESEARCH Use library resources such as searchable databases to research the following topic. Write a report discussing marketing by public accounting firms. Indicate the reasons that marketing is permitted and the type of marketing (particularly advertising) that has occurred. Discuss the success that firms have achieved and the reaction of accountants to marketing, especially advertising. What are the restrictions on advertising by a CPA? CONSULTING PARTNER REVIEW The Prentice Hall website (www.pearsonhighered.com/arens) includes audio clipe prepared by the consulting partner on the audit team. This partner offers addi cal thinking about the subject material of the cases. You questions that require critical thinking ab ny material related to the clips, perform will listen to the clips. read any material related to the clips. Derfor additional research, and prepare additional memos or reports. as the consulting partner on the Lakeside Bob Zimmerman will be serving as the consulting partner In most of the subsequent cases, Mr. Zimmerman Company audit engagement in most of the subsequent cases. Mrzim hestions about the audit of the Lakeside Company will be asking you additional questions about eaudit of the Lakeside ce
