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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Quality management (firm and engagement level)

Eastgate Partners is a mid-sized firm. Its managing partner asks who must be assigned ultimate responsibility and accountability for the firm's system of quality management under ISQM 1. Which answer is correct?

Ultimate responsibility and accountability for the system of quality management must be assigned to the firm's chief executive officer or managing partner, or where appropriate the managing board of partners. Operational responsibilities can be delegated, but the ultimate accountability cannot be passed to reviewers, regulators or a quality head.

  1. AThe firm's head of quality control, who is not a partner, regardless of any other role
  2. BThe firm's external inspection regulator
  3. CThe firm's engagement quality reviewers collectively
  4. DThe firm's chief executive officer or managing partner (or, if appropriate, the managing board of partners)Correct

Explanation

ISQM 1 requires the firm to assign ultimate responsibility and accountability for the system to the firm's chief executive officer or managing partner (or equivalent, or the managing board of partners as appropriate). Operational responsibility may be delegated to others, but ultimate responsibility cannot be delegated to a regulator or reviewers.

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