Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 2, Problem 11RQ
To determine
Indicate the element of quality control which affect this procedure and explain the purpose of the given requirement.
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How will you explain the Auditing Process to someone who has experience in Auditing firm?
The following is an example of a CPA firm’s quality controlprocedure requirement: “Any person being considered for employment by the firm musthave completed a basic auditing course and have been interviewed and approved by anaudit partner of the firm before he or she can be hired for the audit staff.” Which elementof quality control does this procedure affect and what is the purpose of the requirement?
Any person any person being considered for employment by the firm must have completed a basic auditing course and have been interviewed and approved by an audit partner of the audit staff " which element of the quality control does this procedure affect and what is the purpose of the requirements?
Chapter 2 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - State what is meant by the term peer review. What...Ch. 2 - Prob. 13.1MCQCh. 2 - Prob. 13.2MCQCh. 2 - Prob. 13.3MCQCh. 2 - Prob. 14.1MCQCh. 2 - Prob. 14.2MCQCh. 2 - Prob. 14.3MCQCh. 2 - Prob. 15.1MCQCh. 2 - Prob. 15.2MCQCh. 2 - Prob. 15.3MCQCh. 2 - Prob. 16DQPCh. 2 - Prob. 17DQPCh. 2 - Prob. 18DQPCh. 2 - Prob. 19DQPCh. 2 - Prob. 21DQP
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- Audit Procedures for Quality Control in Auditing Firms: Quality control in auditing firms is essential to ensure that audit engagements are performed with the highest level of professionalism, integrity, and accuracy. Audit procedures for quality control encompass various measures implemented by auditing firms to maintain and enhance the quality of their audit services. Here are some key aspects of audit procedures for quality control: 1. Quality Control Policies and Procedures: Auditing firms establish comprehensive quality control policies and procedures that outline the firm's commitment to maintaining audit quality. These policies cover areas such as independence, ethical standards, professional competence, supervision, and review of audit work. 2. Risk Assessment: Auditing firms conduct risk assessments to identify potential risks and threats to audit quality. This involves evaluating factors such as client characteristics, industry risks, inherent risk factors, and complexity of…arrow_forwardUnder what circumstances are external auditors likely to be involved in operational auditing? Can you provide one example of operational auditing by a CPA firm.arrow_forwardAssume that you are a senior on an audit engagement and need to explain to your intern/trainee what each of the risk assessment involves. In your own words and using some terminology that is understandable to an intern who has not yet taken an auditing course, describe the risk assessment procedures and the reason to perform these procedures. (Explore any two risk or procedure or assessment).arrow_forward
- Under what circumstances are external auditors likely to beinvolved in operational auditing? Give one example of operational auditing by a CPA firmarrow_forwardIn making a decision whether to accept or reject an engagement, an auditor should consider competence, independence, integrity of the prospective client's management and its ability to serve the client properly. Furthermore, the auditor is expected to perform the following (choose all the items that apply to the previous statement): * Obtain a preliminary knowledge of the client's business and industry to determine whether the client management has the degree of competence required by the engagement. Consider whether there are any threats to the firm's independence and objectivity, and if so, whether adequate safeguards can be established. Evaluate auditability. Investigation of the integrity of the client's management through inquiry to appropriate parties or communication with the successor auditor. Agree on the terms of the engagement and prepare a management representation letter. Evaluation of the firm's ability to serve the prospective client.arrow_forwardAudit firms are expected to establish and maintain a system of quality control. PCAOB inspections often cite the lack of quality controls as a deficiency of audit firms. What role does leadership play in developing the kind of quality control system that supports ethical decision making in audits?arrow_forward
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