Video: Engagement Quality Control & Using the Work of Others Objectives

This lesson covers the responsibilities of a CPA firm in maintaining a strong system of quality control, emphasizing the importance of staff training, continuing professional education, and thorough checking processes. The lesson also discusses the application of quality control procedures in audit and non-audit engagements and explores factors to consider when determining the use of work from the internal audit function, specialists, or component auditors. Finally, the lesson delves into the nature and scope of the work of internal auditors and component auditors that can be used in engagements. Throughout the lesson, Nick Palazzolo provides in-depth insights and helps build a strong understanding of these concepts to prepare for the exam.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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First off, we want to recognize CPA firm's responsibilities in its accounting and auditing practice system of quality control. Here we're going to see that, yeah, you need to train the new hires to make sure that they're able to replace those with more experience. You're going to see all these things, if you worked in an accounting firm before, you're going to be like, okay, this is everything that they love to preach, they love to embody. Yes, we need to train everyone. We need to make sure that everyone's getting their CPE hours, there's quality all around, that no one's being left behind, that we're developing our employees so that they can, again, sustainably take over the reins from those above. We want to make sure that everyone's checking everything because, well, the AICPA loves to preach, and it is true. What's the whole point of this license? It's respect. It's the fact that we've earned it, we've worked hard, and we do everything in our power to put actual weight behind it. Because if having a CPA license didn't mean anything, if everyone was just sloppy with their work, well, then that would degrade the whole point and you probably wouldn't even be trying to get your license anymore. The second point, we also want to apply quality control procedures on an audit or non-audit engagement. We'll talk about what those are. Obviously, just, you could simply say, checks, making sure that everything's being done properly. We also want to identify the factors to consider in determining the extent to which an engagement team should use the work of the internal audit function specialist or component auditor in an audit or non-audit engagement. In addition to specialists, we could use the client's work, we can use the

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Engagement Planning, Understanding an Entity, & Understanding its Internal Control

Module: 2 Concepts, 36 Videos

Management's Responsibility for Disclosing Related Parties, Going Concern, Litigation, Estimates, & More Overview

1:09

Management's Responsibility for Disclosing Related Parties, Going Concern, Litigation, Estimates, & More Objectives

4:41

Introduction to Management's Representation and Responsibility

2:56

Reliance on Management Representations