ISQC 1: Audit Firms must ensure that their Audits adhere to Quality Standards
The purpose of this is to reduce the RISKS of: 审计事务所必须确保他们的审计工作遵守质量标准，其目的是减少以下的风险： There are 2 Different Quality Control Standards 有两种不同的质量控制标准 [*] – However, effective 15 December 2022: [*] – 然而，即将在2022年12月15日生效:- ISQM 1 取代了 ISQC 1; ISA 220 财务报表审计的质量管理取代财务报表审计的质量控制 *Quick note to Audit Firms: Firms are recommended to research the requirements of the three new quality management […]
ISQC 1: Firm Level Quality Control
Scope of this ISQC | 范围 This International Standard on Quality Control (ISQC) addresses a firm’s duties regarding its quality control system for audits and reviews of financial statements and other assurance and related services engagements. The ISQC 1 should be read in conjunction with any applicable ethical requirements. Additional standards and guidance on the […]
ISQC 1: Self Assessment Checklist on the Quality Control Policies and Procedures at the Firm Level
Introduction The purpose of this checklist, among other things, is for each member to perform a self-assessment exercise on the quality control policies and procedures at the firm level. Part I of the checklist is organised around the elements detailed in the ISQC1 [*}. Part II will deal with issues that the Institute would expect […]
6. Is Professional Scepticism necessary in other Audit areas besides Fraud?
Throughout the auditing process, Professional Scepticism is vital. 在整个审计过程中，职业怀疑态度是至关重要的。 Professional Scepticism is especially crucial when handling complicated, significant, or highly judgmental audit areas, such as: Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures – For example, when: 在处理复杂、重大或高度判断性的审计领域时，职业怀疑态度尤为关键，例如： 会计估计，包括公允价值会计估计，以及相关的披露 — 例如，当 Going Concern For example, In examining management’s plans for future actions concerning […]
7. How can the Application of Professional Skepticism be Evidenced?
Auditors often show Professional Skepticism during audit conversations. The auditor’s discussion with TCWG may explain why a substantial accounting practice permissible under the applicable financial reporting framework is not most suited for the entity. 审计师在审计谈话中经常表现出职业怀疑态度。 审计师与 TCWG 的讨论可能会解释为什么在适用的财务报告框架下允许的实质性会计做法却不是该实体最适合的。 Audit documentation is essential for demonstrating Professional Skepticism since it shows that the audit was planned and […]
8. Do Regulators, Audit Firm Oversight Bodies, and Governance Bodies support Auditors’ Scepticism?
The ISAs do not set forth requirements for regulators and oversight bodies of the audit firms, nor for TCWG. However, because of the critical role that those stakeholders serve in achieving audit quality, they are in a position to further challenge auditors to be skeptical through adequate two-way communication and effective oversight and inspection of […]
5. How does Professional Skepticism relate to the Auditor’s Responsibilities with respect to Fraud?
Due to the nature of fraud, which can involve sophisticated and well-planned schemes to hide it or even collusion, the auditor’s Professional Scepticism is especially important when considering the risks of material misstatements caused by fraud. 由于欺诈的性质，它可能涉及复杂和精心策划的隐藏计划，甚至是串通一气，在考虑欺诈造成的重大错报风险时，审计师的职业怀疑态度尤为重要。 Professional Scepticism is given a lot of attention in ISA 240. It includes the requirements about the need […]
3. How can Audit Firms and Auditors promote Professional Skepticism?
Professional Skepticism is influenced by personal behavioural characteristics (i.e., attitudes and ethical values) and the level of competence (i.e., knowledge) of the individual conducting the audit. These, in turn, are influenced by education, training, and experience. The Professional Skepticism of the engagement team is also influenced by the behaviour of the firm’s leadership and engagement […]
4. At what stage in the Audit Process is Professional Skepticism necessary?
Professional Skepticism is relevant and required throughout the audit, despite the fact that it is not mentioned in every ISA. For example: 1) Engagement Acceptance – For instance, while assessing the integrity of principal owners and management. 2) Identifying and Assessing Risks of Material Misstatement – For example, when: 尽管它没有在每一个国际审计准则中提到，职业怀疑论在整个审计过程中都是相关的，也是必须的，例如：- 1) 项目接受时 [意思就是说 – 接受委任] […]
1. Professional Skepticism In An Audit Of Financial Statements
The auditing practice requires a high level of Professional Skepticism at all times. 在审计领域，职业怀疑论的概念无处不在。 In the same way that a Jedi from Star Wars is always working to improve his or her understanding of the “force,” an auditor is always working to improve his or her capacity to exercise Professional Skepticism. When carrying out an […]
