Chapter 1

Question 1

To comply with the AICPA’s quality control standards, which action should a CPA firm take?

Answer 1

Establish policies to ensure that audit work meets applicable professional standards.

Question 2

Which element in quality control procedure should be relevant, adequate, and complied with?

Answer 2

Monitoring.

The objectives of monitoring these policies and procedures are to evaluate:

1. compliance with professional standards and legal requirements.
2. The design and effectiveness of the quality control system,
3. Whether appropriate reports are issued.