Indicate for Each of the Following Items the Element of Quality

question 27

Essay

Indicate for each of the following items the element of quality control to which it relates.
1.Policies should be established for making the decision whether to accept or retain a client in order to minimize the risk of associating with a client whose management lacks integrity.
2.Policies should be established to assure that personnel are independent of clients when performing attest services.
3.Policies and procedures must be established to provide an ongoing consideration and evaluation of the effectiveness of professional development activities.
4.Policies should be established to reasonably assure that work is assigned to personnel who have the technical training and proficiency required for the assignment.
5.Policies and procedures should be established for planning, performing, supervising, reviewing, documenting and communicating the results of each engagement.

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Definitions:

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products and services.

Depreciation

The process of allocating the cost of buildings and equipment (but not land) over their productive lives using a systematic and rational method

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.