The Clarity Project
The International Accounting Standards Board (IAASB) initiated a campaign in 2004 to improve the clarity (readability) of the ISAs. This Clarity Project’s overarching objective was to make the ISAs more understandable, which would, in turn, make it easier to apply the standards consistently and lead to an improvement in the overall audit quality on a […]
Improving Audit Quality 3: An Overview of ISQM 1 – Firm’s System of Quality Management
What? The International Standard on Quality Management 1 (ISQM 1) – Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements strengthens firms’ quality management systems by taking a robust, proactive, and effective approach to quality management. The standard encourages firms to design a system of quality […]
Improving Audit Quality 1: An Overview
Back to N Years Ago When I was younger (wow, this makes me feel so old), audit quality was not really a “thing.” I watched my superiors perform audits they believed to be sufficient, and my colleagues and I were taught to follow in their footsteps. We conducted what we believed to be good audits […]
ISQC 1: Documentation of the System of Quality Control
对质量控制制度的记录 Para 57 The firm shall establish policies and procedures requiring appropriate documentation to provide evidence of the operation of each element of its system of quality control. (Ref: Para. A73–A75) 会计师事务所应当制定政策和程序，要求形成适当的工作记录，以对质量控制制度的每项要素的运行情况提供证据。 （参见：第 A73－A75 段） Para 58 The firm shall establish policies and procedures that require retention of documentation for a period of time sufficient […]
ISQC 1: Engagement Performance (A)
Consistency in the Quality of Engagement Performance (Ref: Para. 32(a)) 业务执行质量的一致性（参见：第 32 段第（a）项） Para A32 The firm promotes consistency in the quality of engagement performance through its policies and procedures. This is often accomplished through written or electronic manuals, software tools or other forms of standardized documentation, and industry or subject matter-specific guidance materials. Matters […]
ISQC 1: Acceptance and Continuance of Client Relationships and Specific Engagements
客户关系和具体业务的接受与保持 Para 26 The firm shall establish policies and procedures for the acceptance and continuance of client relationships and specific engagements, designed to provide the firm with reasonable assurance that it will only undertake or continue relationships and engagements where the firm: 会计师事务所应当制定有关客户关系和具体业务接受与保持的政策和程序，以合理保证只有在下列情况下，才能接受或保持客户关系和具体业务： Para 27 Such policies and procedures shall require: 这些政策和程序应当要求： Para 28 The […]
ISQC 1: Human Resources
人力资源 Para 29 The firm shall establish policies and procedures designed to provide it with reasonable assurance that it has sufficient personnel with the competence, capabilities, and commitment to ethical principles necessary to: 会计师事务所应当制定政策和程序，合理保证拥有足够的具有胜任能力和必要素质并承诺遵守职业道德原则的人员，以： Assignment of Engagement Teams 项目组的委派 Para 30 The firm shall assign responsibility for each engagement to an engagement partner and shall […]
ISQC 1: Relevant Ethical Requirements
相关职业道德要求 Para 20 The firm shall establish policies and procedures designed to provide it with reasonable assurance that the firm and its personnel comply with relevant ethical requirements. 第20段：会计师事务所应当制定政策和程序，以合理保证会计师事务所及其人 员遵守相关职业道德要求。 Independence | 独立性 Para 21: The firm shall establish policies and procedures designed to provide it with reasonable assurance that the firm, its personnel and, […]
ISQC 1: Leadership Responsibilities for Quality within the Firm
对业务质量承担的领导责任 Para 18 The firm shall establish policies and procedures designed to promote an internal culture recognizing that quality is essential in performing engagements. 第18段：会计师事务所应当制定政策和程序，培育以质量为导向的内部文化。 Such policies and procedures shall require the firm’s chief executive officer (or equivalent) or, if appropriate, the firm’s managing board of partners (or equivalent) to assume ultimate responsibility for the […]
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 […]
