ACCA Strategic Professional · Advanced Audit and Assurance (International) · Quality management (firm and engagement level)
Brandt Audit LLP is documenting the components of its system of quality management under ISQM 1. Which of the following is one of the components of the system?
The firm's risk assessment process is a component of the system of quality management under ISQM 1, alongside governance and leadership, ethics, acceptance and continuance, engagement performance, resources, information and communication, and monitoring and remediation. Sampling methods and fee schedules are not named components.
- AThe firm's risk assessment processCorrect
- BAudit sampling methodology
- CThe engagement completion document
- DThe client acceptance fee schedule
Explanation
ISQM 1 components include the firm's risk assessment process, governance and leadership, relevant ethical requirements, acceptance and continuance, engagement performance, resources, information and communication, and the monitoring and remediation process. Sampling methodology and fee schedules are not components, though they may relate to responses.
Did you get it right without looking?
One question tells you little. A timed set on Quality management (firm and engagement level) shows your real accuracy, how long you take and where you lose marks.
More Quality management (firm and engagement level) questions
- A national audit regulator inspects Brightwater & Co and reports that the firm's engagement files for three listed clients lacked sufficient…
- Quill Audit's engagement partner on a client assignment learns that a senior team member has serious concerns about the client's revenue rec…
- During a firm-wide review, Orchid LLP finds that several audit files were signed off with unresolved deficiencies in documenting going conce…
- Brightwell & Co, an audit firm, is designing its system of quality management under ISQM 1. The managing partner says that responsibility fo…
- Eastgate Partners is a mid-sized firm. Its managing partner asks who must be assigned ultimate responsibility and accountability for the fir…
- Kestrel Audit is reviewing how it obtains and communicates independence confirmations. Which practice best satisfies ISQM 1's requirement re…