Jones and Co. CPA's, performed an audit in which it did not follow generally accepted auditing...
Jones and Co. CPA's, performed an audit in which it did not follow generally accepted auditing standards in their auditing of receivables, thereby violating the fifth General Standard of AICPA's Attestion Standards . Which of the 6 Elements of Quality Control was deficient at Jones and Co.?
Homework Answers
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.
Jones and Co. CPA's, performed an audit in which it did not follow generally accepted auditing standards in their auditing of receivables, this signify lack of leadership responsibilities for quality within the firm.
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