In response to the AICPA's quality control program for individual public accounting firms, many firms have drafted quality control documents that describe policies and procedures designed to provide reasonable assurance that the firm is complying with attestation standards and generally accepted auditing standards on all engagements. Following is a selected list of policies and procedures taken from a public accounting firm's quality control document.

a. As a member of both practice divisions of the AICPA, the firm is subject to and cooperates in the Quality Control Peer Review Program, The firm's Audit Monitoring Committee is responsible for scheduling periodic working paper reviews for completed engagements and for ensuring that all professional personnel are made aware of the knowledge gained by the reviews.

b. The firm is not to express an opinion m an attestation or audit engagement if professional staff serve as executor, trustee, officer, or director of the organization.

Other appointments to these positions in either client or noncUent organizations must be in agreement with the AICPA's Code of Professional Conduct.

c. Situations occur or questions arise that require certain technical accounting or auditing knowledge, or specialized industry knowledge that may not exist within the engagement team. In these cases, the engagement partner or others associated with the engagement shall consult with the Partner for Technical Services or other designated personnel to obtain the assistance needed or to otherwise resolve the issue.

d. The following factors are considered by the Scheduling Partner in achieving a balance of the personnel elements of the engagement: staffing requirements, personnel skills, individual development, and staff utilization during the job.

e. At the annual partners meeting, the Administrative Partner assures that no partner has any loan from a client other than those specifically permitted by professional ethics.

f. On each engagement, adequate review is to be performed at all organizational levels, as appropriate, considering the training, ability, and experience of the personnel assigned and the complexity of the engagement.

g. Each year, all professional staff are responsible to develop a personal plan that includes goals for participating in on-the-job training through challenging and diversified assignments, formal programs prepared and conducted by the firm and by professional organizations, individual development through self-study and other activities, and participation in and service to professional, community, and public and /or private organizations and activities.

h. The personal attributes sought in entry-level professional staff include but are not limited to the following: motivation, professional potential, language skills, demonstrated involvement, and leadership.
i. Personnel are periodically evaluated and are advised formally of their progress.
Staff personnel files are maintained for each professional staff member and contain written evaluations of performance.
j. The reputation of a company's directors, officers, and principal shareholders or owners is of great importance. The firm seeks to minimize the likelihood of associating with a client whose management lacks integrity and a fair degree of stability over time. In addition, the nature of the business, its sources of financing and financial need, its internal controls, and the purpose for and nature of the audit or attestation engagement are all considerations in evaluating the relative risk of our professional liability in serving the company.
Required:

1. Explain the relationship between quality control and peer review for a public accounting firm.

2. For each of the policies and procedures listed above, indicate the element of quality control addressed by the firm.