A basic objective objective of a CPA CPA rm is to provide professional professional service service that conform conform with professiona professionall standards. easonable easonable ass!rance of achievin" this basic objective is provided thro!"h a. A s#stem of peer review c. Contin!in" professional ed!cation b. A s#stem of $!alit# controls d. Compliance with "enerall# accepted reportin" standards &he e'amination e'amination of CPAs CPAs of a CPA CPA rm(s a!ditin" a!ditin" practices practices to ascertain ascertain compliance compliance with its $!alit# $!alit# control control s#stem a. Compliance a!dit b. Peer eview c. E'amination d. )!alit# control a!dit )!alit# )!alit# control control policie policies s and proced!r proced!res es are re$!ire re$!ired d to be implemente implemented d at a b c d A!dit rm level +es +es No No ,ndivid!al a!dit level +es No +es No &he rm is to be staed b# personnel who have attained attained and maintained maintained the technical technical standards standards and professional professional competence re$!ired to enable them to f!lll their responsibilities with d!e care is the objective of what $!alit# control polic# a. Professional re$!irements b. Assi"nment c. /0ills and competence d. Dela"ation ,n connection connection with the element element of professional professional development2 development2 a CPA CPA rm(s s#stem s#stem of $!alit# control control sho!ld sho!ld ordinaril# ordinaril# provide that all personnel a. 3ave the 0nowle 0nowled"e d"e re$!ire re$!ired d to enable them them to f!ll respons responsibil ibilitie ities s assi"ned. assi"ned. b. Possess Possess j!d"e j!d"ement ment22 motivati motivation2 on2 and and ade$!ate ade$!ate e'peri e'perience ence c. /ee0 assistance assistance from persons havin" appropriat appropriate e levels of 0nowled"e2 0nowled"e2 j!d"ement2 and a!thorit# a!thorit# d. Demonstr Demonstrate ate compli compliance ance with peer review review direct directives ives 5ithin the the conte't of of $!alit# control2 control2 the primar# primar# p!rpose of contin!in" contin!in" professional professional ed!cation ed!cation and trainin" trainin" activities2 activities2 is to enable a CPA rm to provide personnel within the rm with a. &echnica echnicall trainin" trainin" that that ass!res ass!res proci procienc# enc# as an an a!ditor a!ditor b. Professional Professional ed!cation ed!cation that that is re$!ired re$!ired in order to perform with d!e professional professional care care c. 6nowled"e re$!ired re$!ired to f!ll assi"ned responsibilities responsibilities and to pro"ress pro"ress within within the rm d. 6nowled" 6nowled"e e re$!ir re$!ired ed in order order to perform perform a peer review review ,n p!rs!in" its its $!alit# control control objectives objectives with respect respect to assi"nin" assi"nin" personnel personnel to en"a"ements2 en"a"ements2 a p!blic acco!ntin" acco!ntin" rm rm ma# !se policies and proced!res s!ch as a. otatin" otatin" emplo#ees emplo#ees from assi"nment to assi"nment assi"nment on a random basis basis to aid in the sta8n" sta8n" trainin" trainin" eort b. e$!irin" e$!irin" timel# identication identication of the sta8n" sta8n" re$!irement re$!irements s of specic specic en"a"ements en"a"ements so that that eno!"h $!alied $!alied personnel can be made available c. Allowin" sta to select the the assi"nments assi"nments of their choice choice to promote better client client relationshi relationships ps d. Assi"nin" a n!mber of emplo#ees to to each en"a"ement en"a"ement in e'cess of the n!mber n!mber re$!ired re$!ired so as not to to overb!rden overb!rden the sta and interfere with the $!alit# of a!dit wor0 performed. A CPA CPA rm(s personnel partner partner periodicall# periodicall# st!dies st!dies CPA CPA rm(s personnel advancement advancement e'perience to ascertain ascertain whether individ!als meetin" stated criteria are assi"ned increased de"rees of responsibilit#. &his is evidence of the CPA rm(s adherence to prescribed standards of e. )!alit# co control b. /!pervision and review c. D!e professional care d. ieldwor0
Name: ________________________________________
Date: ______________________________
Encircle the best answer. 1.
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A basic objective objective of a CPA CPA rm is to provide professional professional service service that conform conform with professiona professionall standards. easonable easonable ass!rance of achievin" this basic objective is provided thro!"h a. A s#stem of peer review c. Contin!in" professional ed!cation b. A s#stem of $!alit# controls d. Compliance with "enerall# accepted reportin" standards &he e'amination e'amination of CPAs CPAs of a CPA CPA rm(s a!ditin" a!ditin" practices practices to ascertain ascertain compliance compliance with its $!alit# $!alit# control control s#stem a. Compliance a!dit b. Peer eview c. E'amination d. )!alit# control a!dit )!alit# )!alit# control control policie policies s and proced!r proced!res es are re$!ire re$!ired d to be implemente implemented d at a b c d A!dit rm level +es +es No No ,ndivid!al a!dit level +es No +es No &he rm is to be staed b# personnel who have attained attained and maintained maintained the technical technical standards standards and professional professional competence re$!ired to enable them to f!lll their responsibilities with d!e care is the objective of what $!alit# control polic# a. Professional re$!irements b. Assi"nment c. /0ills and competence d. Dela"ation ,n connection connection with the element element of professional professional development2 development2 a CPA CPA rm(s s#stem s#stem of $!alit# control control sho!ld sho!ld ordinaril# ordinaril# provide that all personnel a. 3ave the 0nowle 0nowled"e d"e re$!ire re$!ired d to enable them them to f!ll respons responsibil ibilitie ities s assi"ned. assi"ned. b. Possess Possess j!d"e j!d"ement ment22 motivati motivation2 on2 and and ade$!ate ade$!ate e'peri e'perience ence c. /ee0 assistance assistance from persons havin" appropriat appropriate e levels of 0nowled"e2 0nowled"e2 j!d"ement2 and a!thorit# a!thorit# d. Demonstr Demonstrate ate compli compliance ance with peer review review direct directives ives 5ithin the the conte't of of $!alit# control2 control2 the primar# primar# p!rpose of contin!in" contin!in" professional professional ed!cation ed!cation and trainin" trainin" activities2 activities2 is to enable a CPA rm to provide personnel within the rm with a. &echnica echnicall trainin" trainin" that that ass!res ass!res proci procienc# enc# as an an a!ditor a!ditor b. Professional Professional ed!cation ed!cation that that is re$!ired re$!ired in order to perform with d!e professional professional care care c. 6nowled"e re$!ired re$!ired to f!ll assi"ned responsibilities responsibilities and to pro"ress pro"ress within within the rm d. 6nowled" 6nowled"e e re$!ir re$!ired ed in order order to perform perform a peer review review ,n p!rs!in" its its $!alit# control control objectives objectives with respect respect to assi"nin" assi"nin" personnel personnel to en"a"ements2 en"a"ements2 a p!blic acco!ntin" acco!ntin" rm rm ma# !se policies and proced!res s!ch as a. otatin" otatin" emplo#ees emplo#ees from assi"nment to assi"nment assi"nment on a random basis basis to aid in the sta8n" sta8n" trainin" trainin" eort b. e$!irin" e$!irin" timel# identication identication of the sta8n" sta8n" re$!irement re$!irements s of specic specic en"a"ements en"a"ements so that that eno!"h $!alied $!alied personnel can be made available c. Allowin" sta to select the the assi"nments assi"nments of their choice choice to promote better client client relationshi relationships ps d. Assi"nin" a n!mber of emplo#ees to to each en"a"ement en"a"ement in e'cess of the n!mber n!mber re$!ired re$!ired so as not to to overb!rden overb!rden the sta and interfere with the $!alit# of a!dit wor0 performed. A CPA CPA rm(s personnel partner partner periodicall# periodicall# st!dies st!dies CPA CPA rm(s personnel advancement advancement e'perience to ascertain ascertain whether individ!als meetin" stated criteria are assi"ned increased de"rees of responsibilit#. &his is evidence of the CPA rm(s adherence to prescribed standards of a. )!alit# co control b. /!pervision and review c. D!e professional care d. ieldwor0
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&he rms performance eval!ation of its personnel and advisin" them of their pro"ress is a $!alit# control proced!re that relates to a. Promotion b. a. Advancement b. Professional Development c. 3irin" d. All of these 5hich of the followin" is not li0el# a $!alit# control proced!re on cons!ltation> a. ,denties areas and speciali?ed sit!ations where cons!ltation is re$!ired and enco!ra"e personnel to cons!lt with or !se a!thoritative so!rces on other comple' matters. b. Desi"nates individ!als as specialist to serve as a!thoritative so!rces and dene their a!thorit# in cons!ltative sit!ations c. Assi"ns an appropriate person or persons to be responsible for assi"nin" personnel to a!dits d. /pecies the e'tent of doc!mentation to be provided for the res!lt of cons!ltation in those areas and speciali?ed sit!ations where cons!ltation is re$!ired a. Eval!ates the rm(s independence and its abilit# to serve the prospective client b. eview and test compliance with the rst "eneral $!alit# control policies and proced!res c. Desi"nates individ!als as specialist to serve as a!thoritative so!rces and dene their a!thorit# in cons!ltative sit!ations d. A. Professional re$!irements E. Cons!ltation @. /0ills and competence . D!e professional care C. Assi"nment . a. ,ndependence b. ,nte"rit# c. Condentialit# d. Pr!dence ”Hard work beats talent, if talent doesn’t work hard”
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&he rms performance eval!ation of its personnel and advisin" them of their pro"ress is a $!alit# control proced!re that relates to b. Promotion b. b. Advancement b. Professional Development c. 3irin" d. All of these 5hich of the followin" is not li0el# a $!alit# control proced!re on cons!ltation> e. ,denties areas and speciali?ed sit!ations where cons!ltation is re$!ired and enco!ra"e personnel to cons!lt with or !se a!thoritative so!rces on other comple' matters. f. Desi"nates individ!als as specialist to serve as a!thoritative so!rces and dene their a!thorit# in cons!ltative sit!ations ". Assi"ns an appropriate person or persons to be responsible for assi"nin" personnel to a!dits h. /pecies the e'tent of doc!mentation to be provided for the res!lt of cons!ltation in those areas and speciali?ed sit!ations where cons!ltation is re$!ired e. Eval!ates the rm(s independence and its abilit# to serve the prospective client f. eview and test compliance with the rst "eneral $!alit# control policies and proced!res ". Desi"nates individ!als as specialist to serve as a!thoritative so!rces and dene their a!thorit# in cons!ltative sit!ations h. A. Professional re$!irements E. Cons!ltation @. /0ills and competence . D!e professional care C. Assi"nment . b. ,ndependence b. ,nte"rit# c. Condentialit# d. Pr!dence ”Hard work beats talent, if talent doesn’t work hard”
