CHAPTER 19 - CHAPTER 19 19-13 A firm's system of quality...

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CHAPTER 19 19-13 A firm's system of quality control encompasses its organizational structure and the policies adopted to provide the firm with reasonable assurance of conforming with professional standards (QC 10.03). The five elements of quality control and examples of policies or procedures that can be used to fulfill each element are: Independence, integrity, and objective : Inform personnel of the firm's independence policies and procedures and advise them that they are expected to be familiar with these policies and procedures. Obtain from personnel annual, written representations stating that they are familiar with the policies and procedures and that prohibited investments are not held and were not held during the period. Personnel management : Plan for the firm's personnel needs at all levels and establish quantified hiring objectives based on current clientele, anticipated growth, personnel turnover, individual advancement, and retirement. Identify the attributes to be sought in hirees, such as intelligence, integrity, honesty, motivation, and aptitude for the profession. Acceptance and continuance of clients : Establish procedures for evaluation of prospective clients, such as (1) obtain and review of available financial information regarding the prospective clients and (2) inquiry of third parties about any information regarding the
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This note was uploaded on 11/29/2009 for the course AMIS 627 taught by Professor Johnson during the Spring '08 term at Ohio State.

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CHAPTER 19 - CHAPTER 19 19-13 A firm's system of quality...

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