ISQC 1 / ISA 220 Quality control
- 1. Quality Control Quality control for audits, reviews, and other assurance engagement Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 2. Learning outcome Explain the principles and purpose of quality control of audit and other assurance engagement. Describe the elements of a system of quality control relevant to a given firm. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 3. Principles and purpose of quality control What’s the purpose of audit? Enhance the intended users’ confidence. How to make the intended user confidence with the audit report? Engagements must be performed with quality Failure to maintained quality Loss of confidence by client and intended users. Sue against the audit firm. Therefore firms must: Perform work that complies with professional standards and regulatory and legal requirement. Issue report that are appropriate in the circumstances Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 4. Quality control ISA 220 / ISQC1 Leadership Ethics Acceptance and continuance Human Resource Engagement performance Monitoring Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 5. Leadership Must establish policies and procedures to promote internal culture. This requires the firm’s management team to: Establish policies and procedures to address performance evaluation, compensation and promotion to demonstrate commitment to quality. Ensure commercial consideration does not override the quality. Ensure resources are sufficient Assign operational responsibility to those with sufficient and appropriate experience, ability and authority to implement those QC procedure. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 6. Ethics Rule based : By law (MIA) Principle based fundamental principles: Integrity, objectivity, professional competence and due care, confidentiality, professional behaviour. Threats to independence and safeguards Self-interest, familiarity, self-review, advocacy, Intimidation Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 7. Acceptance and continuance Matter to consider prior to acceptance Fee, competence, risks, resource, independence and etc. Professional clearance Contact resigned auditor with asking reason behind. Terms of engagement ISA 210 Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 8. Human resources Ensure engagement team collectively have the competence and capabilities to perform the audit in accordance with professional standards. This includes Knowledge of professional standards. Knowledge of relevant industries in which the clients operates. The ability to apply judgement Understanding the firm’s quality control policies and procedure Thinking about quality implicates at every stage of HR. Recruitment, pay, induction, training, personal characteristic, disciplinary. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 9. Engagement performance Design policies and procedures (P&P) to ensure engagements are performed to a satisfactory standard. P&P should cover: Matter relevant to promoting consistency in the quality of engagements Supervision responsibilities. Review responsibilities. Engagement quality control review (EQCR/Hot review) Pre-issuance review Applied to listed or high risks clients (public interest, unusual, laws/regulations) Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.
- 10. Monitoring QC P&P alone do not ensure good quality work. They must be implemented effectively. Therefore the firm must evaluate: Adherence to professional standards and regulatory/legal requirement Whether QC procedures have been implemented on day-to-day basis. Whether the firm’s QC P&P are effective? Firms should carry out post-issuance or “cold” reviews to ensure that QC procedures are adequate, relevant and operating efficiently. Contents of this presentation are adapted from the current of legislation at the time of presentation. No person should rely on the content of this publication without first obtaining professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility to any person in reliance in whole or any part of this contents.