M2

Question 1

How does adopting a system of quality help ensure policies and procedures are implemented

Answer 1

Firm complies with GAAS
Firm complies with legal
Any report issued is appropriate

Question 2

HELPME (elements of QC)

Answer 2

Human resources
Engagement
Leadership responsibilities
Performance
Monitoring
Ethical requirements

Question 3

Human resources

Answer 3

Hiring
Assignment to engagement (periodic rotation)
professional development
Performance evaluation and advancement

Question 4

Engagement

Answer 4

avoid clients with a lack of integrity

Question 5

Leadership responsibilities

Answer 5

Set the tone at the top

Question 6

Performance

Answer 6

Ensure proper supervision and work is appropriately reviewed

Question 7

Monitoring

Answer 7

ongoing evaluation of quality control system

Question 8

Ethical requirements

Answer 8

Maintain independence - at least annually staff should confirm independence

Question 9

Quality control standards vs GAAS

Answer 9

QCS apply to all professional activities while GAAS applies to each individual engagement
*Failed QCS does not mean a lack of compliance