BM1909

IDENTIFYING TASK

Identify the quality control element to which each policy relates. Write the letter of the correct answer on
the space provided before each number. (9 items x 2 points)

a. Engagement performance
b. Human resources
c. Relevant ethical requirements
d. Acceptance and continuance of client relationships
e. Monitoring
f. Leadership responsibilities for quality within the firm

The following policies were taken from the quality control manual of Morales, Cabrera & Co., Certified Public
Accountants:
________ 1. Staff accountants’ working papers are reviewed within one (1) week of being completed.
________ 2. The partner in charge annually selects at random five (5) engagements and evaluates whether
quality control procedures are followed.
________ 3. No uncertainty must exist as to whether a new client is a going concern.
________ 4. To be an in-charge auditor on audits involving more than four (4) hundred working hours, staff
must have previously worked on an engagement in the industry.
________ 5. New staff accountants must be eligible to sit for the CPA exam.
________ 6. In-charge accountants must have passed the CPA exam.
________ 7. As they are issued, new Philippine Accounting Standards (PAS) are discussed with staff.
________ 8. Technical assistance is available to answer accounting and auditing questions.
________ 9. The staff must sign a statement annually that indicates their stock ownership.

04 Activity 1 *Property of STI

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