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Objective of this quality control element:

To provide the firm with reasonable assurance that the work performed by engagement personnel meets the applicable professional standards, regulatory requirements, and the firm's standards of quality. Policies and procedures for engagement performance encompass all phases of the design and execution of the engagement. To the extent appropriate and as required by applicable professional standards, these policies and procedures should cover planning, performing, supervising, reviewing, documenting, and communicating the results of each engagement. Policies and procedures should also provide that personnel refer to authoritative literature or other sources and consult, on a timely basis, with individuals within or outside the firm when appropriate (for example, when dealing with complex, unusual, or unfamiliar issues).

General Policies:

• Planning
• Performance, Documentation and Review
• Consultation
• Other

• Specific Types of Engagements

QC Document Sections:

Independence	Engagement Performance
Personnel Management	Monitoring
Acceptance and Continuance	Introduction to QC Document

Implementation: The firm implements this policy through the following procedures: 

1. Developing, maintaining, and providing personnel with the firm’s policies and procedures manual which prescribes the factors to be considered in the planning process by the engagement team and the extent of documentation of the considerations which may vary depending on the size and complexity of the engagement. Planning considerations include:

   • Making the engagement partner responsible for planning an engagement and assigning responsibilities to appropriate personnel during the planning phase.
   • Developing or updating background information.
   • Requiring planning documentation that includes
   1. Development of proposed work program, tailored to the specific engagement.
   2. Staffing requirements and the need for specialized knowledge, which may have to be obtained from another practice office.
   3. Considering the economic conditions affecting the client or its industry and their potential impacts on the conduct of the engagement.
   4. Considering the risks and how they may affect the procedures to be performed.
   5. Preparing a budget that allocates a sufficient amount of time so the engagement will be performed in accordance with professional standards and the firm’s quality control policies and procedures.
   6. Additional item, if necessary
   7. Additional item, if necessary
2. Additional implementation procedures, if desired by the firm
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Top of Engagement Performance
Top of Quality Control Document

Implementation: The firm implements this policy through the following procedures: 

1. Providing personnel with the firm’s policies and procedures manual or purchased practice aids, which
   • Prescribes the form and content of engagement documentation, including firm-generated or purchased forms, checklists, questionnaires that are to be used in the performance of engagements, the form in which instructions are given to other offices or correspondents, and the extent to which their work is reviewed and documented.
   • Specifies the extent of overall engagement review, at all professional levels, so the financial statements meet professional and firm presentation and disclosure standards.
   • Specifies the extent of review that should be performed of communications to be made to management and the board of directors.
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2. Providing adequate supervision during the course of an engagement. This supervision is based on the training, ability, and experience of the personnel assigned.
3. Assigning responsibility for the review of all reports, financial statements, and engagement documentation to a reviewer senior to the preparer in accordance with procedures outlined in the firm’s manual to obtain reasonable assurance that:
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   • The nature, timing, and extent of procedures performed are consistent with risk assessments made and the approach described in the planning documentation and that exceptions are appropriately investigated. The appropriateness of planned procedures should be reconsidered when significant changes in risk factors occur or are identified between the planning phase of the engagement and the execution of substantive procedures.
   • Firm-prescribed forms, checklists, and questionnaires, tailored as appropriate, are used in the performance of the engagement and reporting on it.
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5. Requiring a second review of the report, financial statements, and selected engagement documentation by a partner or manager as prescribed in the firm’s policies and procedures manual. The extent of review varies based on the type of engagement; for example, audits of SEC clients, engagements for financial institutions and high-risk engagements, as defined by the^, firm, receive the most extensive review.
6. Adhering to guidelines set up by the firm regarding the review of engagement documentation, financial statements, and for documentation of the review process:
• All reviewers are to have appropriate experience, competence and responsibility.
• All work performed and the reports and financial statements issued are to be complete and comply with professional standards and firm policy.
• Appropriate documentation is required on all engagements evidencing review of engagement documentation, financial statements, and reports. Necessary documentation includes completion of’ the firm’s review and approval documentation.
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7. Requiring that all differences of’ professional judgment within an engagement team be resolved by the engagement and quality control partner. The resolution of’ the differences must be appropriately documented. If a member of the engagement team continues to disagree with the resolution, he or she may disassociate himself or herself from the resolution of the matter and will be offered the opportunity to document that a disagreement still exists.
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8. Additional implementation procedures, if desired by the firm
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Top of Engagement Performance
Top of Quality Control Document

Implementation: The firm implements this policy through the following procedures: 

1. Providing personnel with the firm’s policies and procedures manual, which specifies the firm’s consultation policies and procedures. Areas or specialized situations that may require consultation include:

   • Application of newly issued technical pronouncements.
   • Industries with special accounting, auditing, or reporting requirements.
   • Emerging practice problems.
   • Choices among alternative generally accepted accounting principles upon initial adoption or when an accounting change is made.
   • Reissuance of a report, consideration of omitted procedures after a report has been issued or subsequent discovery of facts that existed at the time a report was issued.
   • Filing requirements of regulatory agencies.
   • Meetings with the SEC and other regulators at which the firm is to be called upon to support the application of generally accepted accounting principles which have been questioned.
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2. Designating individuals within or outside the firm as consultants in certain areas. Personnel are to consult with the appropriate individual when issues arise. When differences arise between the engagement partner and the consultant, the matter is resolved by the firm’s designated quality control partner.
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3. Maintaining or providing access to adequate and up-to-date reference libraries in each office which include materials related to specific industries, specialties, and regulatory requirements.
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4. Requiring that documentation of consultation include all relevant facts and circumstances, reference to professional literature used in the determination, the conclusion reached, and signatures of the engagement partner and consultant. This documentation is to be retained in the engagement documentation, and at the discretion of the consultant, entered in a retrievable database to promote consistency in the application of generally accepted accounting principles in similar circumstances.
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5. Additional implementation procedures, if desired by the firm
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Top of Engagement Performance
Top of Quality Control Document

(Version dated XX XX, XXXX)