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    ISQM

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    sajinmathew37

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    © All Rights Reserved
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    ISQM

    Uploaded by

    sajinmathew37
    3 views3 pages

    Copyright

    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views3 pages

    ISQM

    Uploaded by

    sajinmathew37

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Quality Management

    • Proactive attitude
    • Not a compliance or tick box approach
    • tailored to the firm and its client base enabling firms to design a system which addresses
    their specific circumstances and risks.
    • it is key to every audit and every stage of the audit process

    Quality control procedures-HEALME RI


    • Human resources
    • Ethical requirements
    • Acceptance & continuance responsibilities
    • Leadership
    • Monitoring
    • Engagement performance
    • Risk assessment process
    • Information & communication

    1. Risk assessment process


    An ongoing monitoring process rather than a one-off event
    Tailored according to the size of the firm and client portfolio
    Based on
    o Objectives
    o Specific situation & environment
    ▪ Technologies employed by firm
    ▪ Networks
    ▪ External service providers

    2. Governance & leadership


    • Commitment to quality culture and public interest across the firm
    • Tone at the top
    • Responsibility of CEO or managing partner
    • Quality over business-challenge client judgements without fear of the negative
    consequences of losing the revenue arising from the loss of the client

    3. Relevant ethical requirements


    • Set objectives & policies to ensure fulfillment of ethical requirements depending on the size
    & client portfolio
    • Applicable to both group auditor & component auditor
    • Ethical requirements might vary according to the jurisdictions
    4. Acceptance and continuance of client relationships
    procedures addressing client acceptance and continuance of existing business relationships

    • Integrity of management
    • Ethical values of management
    • Compliance with Legal & professional requirements
    • Competence
    • Availability of resources
    • Independence of the auditor

    5. Engagement performance
    audit engagement partner to be sufficiently and appropriately involved throughout the
    engagement.

    • Supervision
    • Review
    • ensure professional scepticism and judgement are exercised by engagement teams.
    • insufficient time
    • not experienced
    • consultation-difference in opinions resolved

    6. Resources
    • employees with the required competence, training, and capabilities to perform the
    engagements to which they are assigned.
    • more experienced individuals to work on areas of a complex nature requiring additional
    judgement
    • ensuring sufficient review by senior team members
    • allowing adequate time to do sufficient testing and analysis of the issues.
    • use independent experts where the firm does not have appropriate personnel
    • additional specialist technological resources.

    7. Information and communication


    Communications should be made in a timely manner supporting the firm’s culture to
    exchange information where appropriate
    • obtaining, generating and using information and
    • communicating the information within the firm,
    o communicating policies to personnel,
    o communication of information obtained during an audit with an engagement
    quality reviewer, or
    o communication between group and component auditors.
    • external communications
    o communication within the firm’s network and with service providers,
    o communications required by law or professional standards, such as when there
    is a specific requirement to report a client’s non-compliance with certain laws and
    regulations to TCWG.
    Ethical & professional Client acceptance & Engagement performance
    requirements continuation
    • The firm’s policies on • Risk assessments • Audit programmes
    ethics documented devised/produced
    • Training material • Client identity • Role assignments
    documents obtained delegated and
    • Registers of training and stored recorded
    undertaken
    • Engagement letters • Client information
    • Completed issued obtained and input
    independence into automated audit
    declarations tools
    • Conclusions
    documented in audit
    file
    • Reports to
    management and
    TCWG

    8. Monitoring and remediation process


    This process is a continuous cycle which firms are specifically required to undertake.

    • Firms must put in place a process for monitoring the SoQM’s effectiveness and
    • ensure deficiencies are identified in a timely manner,
    • allowing corrective actions to be implemented.

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