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- 1. Multiple Choice
The method used by a professional accounting firm to ensure that the firm meets its professional responsibilities to clients and others is
quality control.
continuing professional education.
compliance with generally accepted reporting standards.
peer review.
- 2. Multiple Choice
Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a professional accounting firm to provide its personnel with
technical training that assures proficiency as a valuation expert.
professional education that is required in order to perform with due professional care.
knowledge required to perform a peer review.
knowledge required to fulfill assigned responsibilities.
- 3. Multiple Choice
The purpose of establishing quality control policies and procedures to accept or continue a client relationship is to
minimize the likelihood of associating with a client whose management may lack integrity.
provide reasonable assurance that personnel are adequately trained to fulfill their responsibilities.
document objective criteria for the professional accounting firm's peer review.
monitor the risk factors concerning misstatements that arise from the misappropriation of assets.
- 4. Multiple Choice
Which of the following is an element of the professional accounting firm's quality control system that should be considered in establishing its quality control policies and procedures?
assigning appropriately experienced personnel to engagements
complying with laws and regulations
considering audit risk and materiality
using statistical sampling techniques
- 5. Multiple Choice
Which of the following is NOT an essential component of quality control?
policies that ensure that monitoring activities are effectively applied
policies and procedures to ensure that firm personnel are actively engaged in marketing strategies
policies to ensure that personnel maintain their independence in fact and in appearance
policies and procedures to ensure that the work performed by firm personnel meet applicable professional standards
- 6. Multiple Choice
Which one of the following is not true regarding the Malaysian Institute of Accountants (MIA) peer review requirement?
A professional accounting firm must develop and adhere to quality control standards.
A professional accounting firm will lose MIA eligibility if a peer review is not performed.
Peer reviews are mandatory.
Firms required to be registered with and inspected by the Audit Oversight Board (AOB) are exempt.
- 7. Multiple Choice
How often is the MIA Practice Review Program performed of a member professional accounting firm administered by a MIA under the overall direction of the MIA Practice Review Committee?
every 5 years
every year
every 3 years
every 2 years
- 8. Open Ended
List and describe the six elements of quality control. Who establishes the standards for quality control?
- 9. Multiple Choice
Quality control for a professional accounting firm
is tailored to each specific audit engagement.
includes the organizational structure of the firm and the procedures it establishes.
is a guarantee that auditing standards are followed.
is required only for firms auditing SC companies.
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