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32 Cards in this Set
- Front
- Back
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Quality Control Purpose |
To ensure consistent high quality of work |
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Elements of Quality Control System |
H- Human Resources A- Acceptance and Continuance of Client’s Relationship R- Relevant Ethical Principles L- Leadership Responsibilities E- Engagement Performance M- Monitoring |
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Meaning of PSQC |
Philippine Standard in Quality Control |
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PSA 220 |
Quality Control on Audit of Financial Statements |
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Firms and Personnel should complies with the following requirements |
1. Professional Standards 2. Regulatory 3. Legal |
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PSQC guides the ffg. |
1. Assurance 2. Related Services |
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HR: Sufficient Personnel must have the following |
1. Capabilities 2. Competence 3. Commitment to Ethical Principles |
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Issues related to HR |
1. Peak Periods 2. Disciplinary Actions |
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Fundamental Principles of Relevant Ethical Req. |
P- Professional Competent and Due care I- Integrity C- Confidentiality P- Professional Behavior O- Objectivity |
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Remedy of Threat in Independence |
Safeguard or Rotation |
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Action or Remedy to the Threats of Independence |
1. Eliminate 2. Reduce to an acceptable level 3. Withdraw |
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The purpose of Leadership Responsibilities for Quality within the firm |
To promote an internal culture that is focused on QC |
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Implementation of Leadership Responsibilities |
It depends on the clear, concise and frequent messages and actions |
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The main responsible for the leadership responsibilities |
BOD, BOP or Equivalent |
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Procedures of Leadership Responsibilities |
1. Constant Reminder 2. Rewards and Recognition |
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He is Overall responsbile for the engagement performance |
Engagement Partner (head of the team) |
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Role of Engagement Partner |
1. Direction and Planning 2. Supervising 3. Review 4. Consultation |
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Staff and Personnel should be informed: |
1. Objective 2. Nature of Client’s Business 3. Rules and Regulations 4. Potential Issues 5. Detailed Approach |
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Process of Disciplinary Actions |
A. Interview - to establish fact, causes and solutions B. Counseling or Monitoring |
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Supervising consist of: |
1. Monitoring of Progress 2: Resolving the Issues 3. Consider level of consultation needed |
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Differences of Opinion |
1. Within the Audit Team 2. Within the Consultant 3. Within the Engagement Quality Control Reviewer |
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EQCR |
To provide objective evaluation of the significant judgment made and conclusions reached in formulating the Audit Report |
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Criteria of Eligibility of the Reviewer |
1. Objective and Independent 2. Skills 3. Knowledge 4. Experience 5. Authority |
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Documentation |
Cyclical - atleast three years |
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Under Integrity of Clients |
1. Governance/ Significant Influence 2. Nature of Business & its fiscal health 3. Attitude regarding internal control and professional standards 4. Criminal Involvement 5. Predecessor Auditor |
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Considerations to accept and continue client’s relationship |
1. Competence to perform the engagement - Firm 2. Comply to ethical principles 3. Integrity of the Client |
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Procedures of CR |
1. Perform Acceptance and Continuance Procedures 2. Deciding if whether to accept 3. List of Risk Factors |
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Under competence to perform engagement |
1. Sufficient Personne, Competent and Available 2. Availability of Experts 3. Ability to meet deadline 4. Actual or potential conflict of interest and threats to independence |
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Familiarity Threat |
Sympathetic to client’s interest due to close relationship |
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Remedy of Familiriaty Threat |
Rotation of Audit Team
Note: 7 years to same client |
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Under Integrity of Clients |
1. Governance/ Significant Influence 2. Nature of Business & its fiscal health 3. Attitude regarding internal control and professional standards 4. Criminal Involvement 5. Predecessor Auditor |
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Resignation or Withdraw of Engagement |
1. Consider professional, legal or regulatory requirement to disclose the decision 2. Meeting with those charge with governance 3. Documentation |
