Question

Identify the applicable element of quality control:

e. audit engagement team members enter their electronic signatures in the firm's engagement management software to indicate the completion of specific audit program steps; at the end of the audit engagement, the engagement management software will not allow archiving of the engagement file until all audit program steps have been electronically signed

Answer 1

The applicable element of quality control in this scenario is review and approval. Audit engagement team members must electronically sign off on specific audit program steps before the engagement file can be archived.

Step-by-step explanation:

The applicable element of quality control in this scenario is review and approval. By requiring audit engagement team members to electronically sign off on specific audit program steps, the firm ensures that each step has been completed and reviewed by the relevant team members before the engagement file can be archived.

This process helps to maintain the integrity and accuracy of the audit engagement by providing a system of checks and balances. It ensures that all necessary steps have been followed and documented before the engagement file is finalized.

Furthermore, the use of electronic signatures and engagement management software improves efficiency and reduces the risk of human error, enhancing the overall quality control of the audit process.