For those of you studying. I think that the answer to this research is wrong. I always get it wrong. Can someone explain to me why the answer would be QC10.14 and not QC10.17.
Assume that you are employed by Wilson & Wilson CPAs. One of the partners has asked you to research the professional standards for the section that identifies the elements of a firm's quality control standards. Identify the section and place the reference in the box below.
Requirements
Applying and Complying With Relevant Requirements
.14 Personnel within the firm responsible for establishing and maintaining the firm's system of quality control should have an understanding of the entire text of this section, including its application and other explanatory material, to understand its objective and apply its requirements properly.
.15 The firm should comply with each requirement of this section unless, in the circumstances of the firm, the requirement is not relevant to the services provided by a firm's accounting and auditing practice. (Ref: par. .A1)
.16 The requirements are designed to enable the firm to achieve the objective stated in this section. The proper application of the requirements is, therefore, expected to provide a sufficient basis for the achievement of the objective. However, because circumstances vary widely and all such circumstances cannot be anticipated, the firm should consider whether there are particular matters or circumstances that require the firm to establish policies and procedures in addition to those required by this section to meet the stated objective.
Elements of a System of Quality Control
.17 The firm must establish and maintain a system of quality control. The system of quality control should include policies and procedures addressing each of the following elements:
a. Leadership responsibilities for quality within the firm (the tone at the top)
b. Relevant ethical requirements
c. Acceptance and continuance of client relationships and specific engagements
d. Human resources
e. Engagement performance
f. Monitoring
Policies and procedures established by the firm related to each element are designed to achieve reasonable assurance with respect to the purpose of that element. Deficiencies in policies and procedures for an element may result in not achieving reasonable assurance with respect to the purpose of that element; however, the system of quality control as a whole may still be effective in achieving the objective described in paragraph .12.
.18 The firm should document its policies and procedures and communicate them to the firm's personnel. (Ref: par. .A2–.A3)
AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD
I am so ready for this nightmare to be over. Been at this way too long.
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