The AICPA has established nine elements of quality control. Listed below are specific policies and procedures adopted
Question:
The AICPA has established nine elements of quality control.
Listed below are specific policies and procedures adopted by the CPA firm of Baily, Brown
& Co.:
1. Periodic evaluations are made of personnel.
2. Ongoing supervision is given to less experienced personnel.
3. An experienced CPA is designated as a public utility industry expert.
4. Rules on independence are communicated to the professional staff.
5. The scope and content of the firm's inspection program are defined.
6. All new employees must be college graduates.
7. Copies of Statements on Auditing Standards are provided for all professional staff.
8. A partner assigns personnel to engagements.
9. All new clients must be solvent at the time the engagement is accepted.
Required
a. Identify the quality control element that applies to each of the foregoing items.
b. For each element of quality control identified in (a), state the purpose of the element.
c. Indicate another policy or procedure that applies to the element. Use the following format for your answers:
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