Final answer:
A CPA firm's system of quality control includes procedures for planning and supervision, acceptance and continuance of engagements, and ethical requirements, but not typically financial statement preparation.
Step-by-step explanation:
In connection with the element of engagement performance, a CPA firm's system of quality control should ordinarily include procedures covering a variety of aspects to ensure the effectiveness and quality of the audit work being performed.
These encompass procedures such as planning and supervision, acceptance and continuance of client relationships and specific engagements, and adherence to relevant ethical requirements.
However, it does not typically encompass financial statement preparation as this task is generally the responsibility of the client's internal personnel or management. The CPA's role is to audit those financial statements, not to prepare them.
Planning and supervision: This involves creating a plan for engagements, allocating resources, and supervising the work of staff.
Acceptance and continuance: This includes evaluating potential clients and ongoing relationships to determine if the firm can meet the requirements and ethical obligations.
Ethical requirements: Ensuring compliance with professional ethics standards and maintaining independence and objectivity.
Financial statement preparation: This is not typically included in a CPA firm's system of quality control, as it is the responsibility of the client.