PSQC $1$

PSA $220($Redrafted$)$

Instructions: Read each question carefully and choose the best answer from the options provided.

$1.$ Which standard applies to a CPA firm's overall system of quality control for audits, reviews, and other assurance or related services engagements?

A$.$ Philippine Standard on Auditing $220($Redrafted$)$

B$.$ Code of Ethics for Professional Accountants

C$.$ Philippine Standard on Quality Control $1($PSQC $1)$

D$.$ International Financial Reporting Standards $($IFRS$)$

$2.$ Which standard applies specifically to the engagement$-$level quality control procedures during an audit of financial statements?

A$.$ Philippine Standard on Review Engagements

B$.$ Philippine Standard on Auditing $220($Redrafted$)$

C$.$ Philippine Standard on Quality Control $1($PSQC $1)$

D$.$ Philippine Financial Reporting Standards

$3.$ What is the primary purpose of a system of quality control in an audit firm?

A$.$ To guarantee zero errors in financial reporting

B$.$ To ensure faster completion of engagements

C$.$ To provide reasonable assurance of compliance with professional standards and that appropriate reports are issued

D$.$ To reduce the cost of audit engagements

$4.$ Which of the following is NOT an element of a system of quality control under PSQC $1?$

A$.$ Engagement performance

B$.$ Monitoring

C$.$ Client billing procedures

D$.$ Human resources

$5.$ In relation to quality control, recruitment policies in a CPA firm should focus on: