Question

John recently graduated from the three-year accounting program at George Brown College. During his co-op term he worked for a small audit firm and decided to make that his career. After graduation, he was hired by Rowlands Marcellin and Khan, LLP, a national audit firm.

On starting, John spent the first day meeting the staff and partners in his office. His staff manager took John to lunch for a casual conversation. During the lunch they talked about a lot of subjects, none of which were related to auditing. After lunch, John began his training and trained the entire first week.

The second week, John went with two other staff to audit a radio station in Kingston, east of Toronto. The team stayed in a hotel for three nights and ate in restaurants. During the meals, John was eager to ask questions about the audit, but the other team members said that they did not want to talk about work. After the meal, though, both team members told John to ask anything he would like to help him understand the client better.

John completed the sections testing controls over purchases, payables, and cash disbursements. He also did work on sales and revenue. As he completed each section, his work was carefully reviewed by the Senior Associate, who had one year of experience. John was unhappy that he made so many careless mistakes, but the senior said that it was normal for a person’s first audit. His work was also reviewed by the Manager who found no additional corrections. The Manager was interested in finding out what John had learned about auditing and how it was different from his classes. John replied that the work was not as hard as he thought, but that it was much more precise. The manager told John that that had been her experience as well.

The next day, the team returned to Toronto. John’s next assignment would for a company that imported chemicals from China. John spent the rest of the week reading trade journals about chemical importing.

Required
Briefly discuss two elements of quality control in this case.

Answer 1

Accounting

Accountanting firms keep an important eye for their quality control. Because the financial data published by these firms are very important.

Accounting firms of auditors take responsibility for controlling the quality of their professional engagement. They formulate quality control policies and implement them for all their professional engagements. These policies cover the leadership responsibilities of the accounting firm, relevant ethical requirements, acceptance and continuance of client relationships and
audit engagements, assignment of engagement teams, engagement performance, and monitoring the documentation of the system
of quality control. Appropriate compliance with quality control policies by all members of an accounting firm ensures the quality of their engagement. Audit and assurance, being one of the important professional engagements of a firm, also come under their quality control framework.Other professional standards and applicable regulations also take a pioneering role in controlling the quality of statutory audit of financial statements.

John as a new employee to the firm his work was montired by his senior officials and manger before sending the output to the clients. He has taken adequate training how to perform the job . On the job training is very important at that time we know more about the nature and in depth knowledge of the subject.

Proper training , Taking adequate knowledge from the co worker and superiors is an important factor.Review of the work by supieors and manger .These are very important measure of quality control from the management side.