AHP QC Manual
Location of the AHP Quality Control Manual
What is the AHP intranet in documents and AHP organization.
This is the state of mind that permits a member to perform an attest service without
being affected by influences that compromise professional judgment, thereby allowing
an individual to act with integrity and exercise objectivity and professional skepticism.
What is independence?
An entity that a financial statement attest client can control is considered an affiliate.
What is true?
Performed by an outside independent firm once every 3 years.
What is a peer review?
Monitored on a daily basis when working on an audit engagement.
What is the budget?
Information included in the QC Manual
What are QC policies and procedures and objectives?
This is when you are required to be independent.
What is when you perform an attest engagement for an attest client?
The threat that exists when a member is on the attest engagement team for an
extended period of time.
What is the familiarity threat?
How often AHP should select a sample of engagements to perform an internal inspection.
What is annually?
Performing work beyond what is required for the audit would result in this.
What is an extra billing?
Another term for leadership's responsibilities to promote quality within the firm.
What is tone at the top?
You are required to be independent in order to perform a compilation engagement.
What is false?
It is not required. If a nonindependent firm issues a comp report, the accountant is
required to indicate the accountant's lack of independence in the accountant's
compilation report.
Your immediate family member's employment with an attest client would not impair
firm independence, provided that the family member is not in this type of position.
What is key position?
Definition of reperformance.
What is ensuring that documentation is sufficient for procedures performed to allow
someone to be able to perform the same testing that the auditor performed?
Required to be completed by staff and seniors when 60 or more hours are spent on an
engagement, but could be performed more frequently.
What is a performance review?
Consideration of:
Client management's integrity,
Risks associated with providing professional services,
Communication with predecessor auditor
What are client acceptance and continuance procedures?
If you are a covered member with respect to an attest client, you and your immediate
family may not have a loan to or from an attest client.
Generally this would be true; however, there are some exceptions in regards to lending
institutions.
Providing hosting services to an attest client will impair independence.
What is true?
Hosting services involve 1) acting as the sole host of an attest client's financial or
nonfinancial information system, 2) taking custody of or storing client's data or records
whereby the attest client's data or records would be incomplete and they would need to
come to the firm to get that information, or 3) providing the attest client with electronic
security or backup services including housing an attest client's website.
This should be performed for key controls in addition to being underlined in the system
documentation.
What is a walkthrough?
There should be consideration of these balances the first year that AHP performs an
audit of an entity that has been audited in prior years.
What is opening balances?
This would typically be included as a separate workpaper after the SPM.
Amount of total CPE hours required on an annual basis and number of those hours that
need to be specific to ethics.
What is 40 hours total and 2 hours of ethics (with 1 of the ethics hours every 2 years
being specific to Michigan Ethics)?
Assisting the client with implementing a new accounting standard because they do not
understand how to implement it doesn't impair independence.
What is false?
We need to be careful here in how much assistance we provide and our documentation
of that assistance. The client also needs to be able to take responsibility for the services
and have an understanding of what they are taking responsibility for.
These types of fee arrangements between my firm and an attest client are prohibited.
What are contingent fees and commissions?
This is required when our documentation completion date is after the required date
noted at A-19.
What is 60-day memo?
The goal should be to complete our documentation and wrap up the engagement prior
to the 60 days.
Must-select engagements in a peer review.
What are EBP audits, GAS engagements, audits under FDICIA, and SOC examinations?