The highest standard of quality in the provision of professional services is imperative for the chartered accountancy profession; and even more so for those Chartered Accountants who are also Registered Auditors.
Audit quality is essential to the fulfilment of the objectives on an independent external audit. Consistent and sustainable high audit quality contributes to ensuring the continued relevance and value of audit and assurance services; which in turn are essential in providing trust and confidence to the users of historical financial information, and increasingly also to users of information other than historical financial information.
The IAASB Framework for Audit Quality describes the term audit quality as encompassing certain key elements that create an environment which maximizes the likelihood that quality audits are performed on a consistent basis.
International Standard on Quality Control 1 (ISQC 1) deals with a firm’s responsibilities for its system of quality control for audits and reviews of financial statements, and other assurance and related services engagements. The ISQC is to be read in conjunction with relevant ethical requirements.
International Standard on Auditing 220 (ISA 220) deals with the specific responsibilities of the auditor regarding quality control procedures for an audit of financial statements. It also addresses, where applicable, the responsibilities of the engagement quality control reviewer. ISA 220 is also to be read in conjunction with relevant ethical requirements.
- SAICA Communication: Global Inspection Findings – A Reference Point to Enhance Audit Quality (12 March 2018)
- IFIAR released its 2017 Inspection Findings Survey Report – Released (8 March 2018)
- 2018 Feedback on the IAASB's quality control project - Information Session (22 February 2018)
- IAASB Webcast: Proposed Changes to International Standard on Quality Control ( 21 September 2017)
- IFAC publishes an article on Root Cause Analysis is Transforming Audit Quality
- SAICA FAQs on the application of the ISAs on matters arising from monitoring findings and other in-practice challenges
- Video recording: IAASB’s in SA: Update on Enhancing Audit Quality projects (4 May 2017)
- SAICA Communication: IRBA Inspection Findings – A Further Reference Point to Enhance Audit Quality (22 March 2017)
- IRBA Communiqué: IFIAR issues Report on the 2016 Global Inspections Findings Survey ( 10 March 2017)
- SAICA Communication: Global Inspection Findings – A Reference Point to Enhance Audit Quality (6 March 2017)
- IFIAR released its 2016 Inspection Findings Survey Report (3 March 2017)
- SAICA Comment Letter on the IAASB’s ITC, Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism , Quality Control and Group Audits
- Other Comment Letters on the IAASB’s ITC, Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control and Group Audits
- Video Supplement to the ITC, Enhancing Audit Quality in the Public Interest In this video (issued on 28 April 2016 ) the IAASB reviews the key elements of the ITC, Enhancing Audit Quality in the Public Interest and the ITC Overview.
- IFIAR released its 2015 Inspection Findings Survey Report on 3 March 2016 The survey results indicate that the pace of audit quality improvement is too slow and calls for a measurable improvement by 2019.
- IAASB Invitation to Comment (ITC), Enhancing Audit Quality in the Public Interest In this ITC (issued on 17 December 2015) the IAASB focuses on and is seeking comments on three of its priority projects, namely Professional Skepticism, Quality Control, and Group Audits. Comments are due by 16 May 2016. Below is the link to the templates for use to facilitate responses to the ITC:
Standards and Pronouncements
IAASB 2015 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements from the IAASB
[Note that the above are specific quality control standards, but that the topic of quality control is also addressed in individual review, other assurance and related services standards available in the IAASB Handbook]
Guides and Circulars
Monitoring of Quality
South Africa – Independent Regulatory Board for Auditors (IRBA)
[Additional information with respect to inspections can be found on the IRBA website]
International Forum for Independent Audit Regulators (IFIAR)
[Refer to the IFIAR website for additional information and resources]
SAICA communications and resources