Suggested solutions are provided for each of the requirements presented in the case. Instructional discussion points for the case and a grading rubric are also provided.
This section provides a suggested response to each requirement in the Case.
Requirement 1. Access the AICPA’s Statement on Quality Management Standards (SQMS) No. 1. issued by the Auditing Standards Board (ASB) on June 1, 2022 (obtain from your instructor). List 8–10 quality control deficiencies that are present in the Marcum case and categorize them according to the following components of the SQMS.
a. Governance and Leadership (paragraph 29);
b. Ethical requirements (paragraph 30);
c. Acceptance and continuance of client relationships (paragraph 31);
d. Engagement performance (paragraph 32);
e. Resources (paragraph 33); and
f. Information and communication (paragraph 34).
Note 1: Students can access the SQMS No. 1 on the AICPA website, but they must create a user account in order to do so....
