Hello I need help with this question please! The AICPA has established five elem

Question

Hello I need help with this question please! The AICPA has established five elements of quality control. Listed below are specific policies and procedures adopted by the CPA firm of Baily,Brown &Co., 1.periodic evaluation are made of personnel. 2. Ongoing supervision is given to less experienced personnel. 3. An experienced CPA is designated as a public utility industry expert. 4. Rules on independence are communicated to the professional staff. 5. The scope and content of the firm's inspection program are defined. 6. All new employees must be college graduates. 7. Copies of statements on auditing standards are provided for all professional staff. 8. A partner assigns personnel to engagements. 9. All new clients must be solvent at the time the engagement is accepted. Required: 1. Identify the quality control element that applies to each of the foregoing items. 2. For each element of quality control identified in (1) state the purpose of the elements. 3. Indicate another policy that applies to the element.

Explanation / Answer

All the parts have been answered with the use of following table.

Policy and Procedure Element of Quality Control Purpose Another Policy Periodic evaluation are made of personnel Personnel Management To ensure that the executives undertake general and industry specific continuing professional education and other professional development activities required to fulfill their assigned responsibilities and to meet the requirements of the AICPA and other regulatory agencies. Monitoring Ongoing supervision is given to less experienced personnel Engagement Performance To ensure that less experience executives obtain guidance from personnel with requisite experience, knowledge, authority and judgement as and when required. Monitoring An experienced CPA is designated as a public utility industry expert Personnel Management To ensure that the executives with proper technical training and proficiency are given the assigment. Engagement Performance Rules on independence are communicated to the professional staff Independence, Integrity, and Objectivity To ensure that the executives have complete independence while performing attestation services. Monitoring The scope and content of the firm's inspection program are defined Monitoring To ensure the relevance, appropriateness and adequacy of the firm's policies and procedures. Independence, Integrity, and Objectivity All new employees must be college graduates Personnel Management To ensure minimum qualification required to perform the activities that will be assigned to the new employees after adequate training has been provided. Monitoring Copies of Statements on Auditing Standards are provided for all professional staff Monitoring To ensure that the executives have access to the latest guidance materials and statements of accounting practices/procedures. Personnel Management A partner assigns personnel to engagements Engagement Performance To ensure that the executives given a particular assignment obtain guidance from personnel with requisite experience, knowledge, authority and judgement as and when required. Personnel Management All new clients must be solvent at the time the engagement is accepted Acceptance and Continuance of Clients To ensure that the nature and scope of work to be performed have been discussed with and understood by the client. Independence, Integrity, and Objectivity

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