AT (2) THE PROFESSIONAL STANDARDS
Generally Accepted Auditing Principles
c.
Relevant Ethical Requirements
Technical and
training proficiency
Independence
Professional Care
Planning
Internal Control
Considerations
Evidential Matters
GAAP
Inconsistency
Disclosures
Opinion
General (TIP)
Fieldwork (PIE)
Reporting (GIDO)
The firm should establish policies and procedures to provide
it with reasonable assurance that the firm and its personnel
comply with the ethical requirements:
1.
2.
3.
4.
5.
The Auditing and Assurance Standards Council has been
given the task to promulgate the auditing standards,
practices and procedures.
Practice Statements provides assistance to auditors in
implementing the standards and to promote good practice in
the accountancy profession.
Frameworks for
Assurance
Engagements
Related Services
Review
Other
Assurance
Engagements
Agreed-Upon
Procedures
Compilation
PSA 100-999
PAPS 1000-1999
PSRE 2000-2699
PREPS 2700-2999
3.
4.
5.
6.
PSAE 3000-3699
PAEPS 3700-3999
PSRS 4000-4699
PRSPS 4700-4999
Such policies and procedures should address the issues
concerning personnel:
&
Acceptance and Continuance of Client Relationship
The firm should establish policies and procedures to provide
it with reasonable assurance that it will only undertake or
continue relationships or engagement where it:
a.
b.
a.
That engagements are performed in accordance
with professional standards and regulatory and
legal requirements; and
That the audit reports issued is appropriate in the
circumstances.
The firm should establish policies and procedures that
requires an engagement quality control review that provides
an objective evaluation of the significant judgements made
and conclusions reached in formulating the auditors report.
This requires the partner:
a.
b.
c.
The firm should establish policies and procedures to provide
it with reasonable assurance that it has personnel with
Capabilities, Competence and Commitment.
3.
4.
5.
The firm should establish policies and procedures to provide
it with reasonable assurance:
Engagement Quality Control Review
Human Resource and Assignment
Acceptance and Continuance of Client
Relationship
Relevant Ethical Requirements
Leadership Responsibilities for Quality on Audits
Engagement Performance
Monitoring
Recruitment
Performance Evaluation, Compensation
Promotion
Capabilities and Competence
Career Development
Assignment of Engagement Teams
Engagement Performance
The engagement partner should take responsibility for the
Direction, Supervision, Review and Overall Performance of
the engagement.
Human Resource and Assignment
1.
2.
The firm should establish policies and procedures to
promote internal culture based on recognition that quality is
essential in the performance of engagements.
b.
ELEMENTS OF A SYSTEM OF QUALITY CONTROL
1.
2.
Integrity
Objectivity
Professional Competence and Due Care
Confidentiality
Professional Behavior
Leadership Responsibilities for Quality on Audits
PHILIPPINE STANDARDS ON AUDITING (PSAs)
Audit
can comply with ethical requirements
has considered the integrity of the client
is competent to perform the engagement and has
the capabilities and resources to do so
to determine that an engagement quality control
reviewer has been appointed;
to discuss significant matters arising from the
audit engagement; and
Not to issue auditors report until the completion
of the engagement.
Differences in Opinion
Differences in the opinion of the members of the audit team
shall be brought to the attention of the audit partners within
the firm without the fear of reprisals. No audit report shall be
issued until the differences are resolved.
Monitoring
The continued adequacy and operational effectiveness of
quality control policies and procedures shall be monitored.
The firm should establish policies and procedures to provide
it with reasonable assurance that the system of quality
control are relevant, adequate and operating effectively.
QUALITY CONTROL REVIEW
The PRC has created a QRC which shall conduct a review
on applicants of registration to practice public accountancy
and shall recommend the revocation of the certificate of
registrations of CPAs who have not observed the quality
control measures.
