Question
Question 5 (11 marks) (a) Quality control is critical to a firm of auditors and to the accountancy profession. A firm is required by HKSQC1
Question 5 (11 marks)
(a) Quality control is critical to a firm of auditors and to the accountancy profession. A firm is required by HKSQC1 to establish and maintain a system of quality control that includes a number of policies and procedures.
HONG KONG BAPTIST UNIVERSITY Page: FIRST SEMESTER EXAMINATION, 2020-2021
Required:
Discuss the leadership responsibility for quality.
(b) According to HKSA210 (Clarified), the objective of the auditor is to accept or continue an audit engagement only when the basis upon which it is to be performed has been agreed, through establishing whether the preconditions for an audit are present and confirming that there is a common understanding between the auditor and management and, where appropriate, those charged with governance of the terms of the audit engagement.
Required:
Explain the steps to be taken by an auditor in order to establish whether the preconditions for
an audit are present.
(5 marks)
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