IAASA has today published a guide to its reports on the quality assurance review of public-interest entity audit firms (PIE audit firms). The guide can be found here [link updated 24 March 2020].
IAASA’s Audit Quality Unit has an overall objective to promote improvements in the quality of auditing of public-interest entities (PIEs). This is achieved through the inspection of PIE auditors. The process involves an assessment of the design of the internal quality control system, performance of compliance testing around the implementation of the PIE audit firm’s processes and procedures, together with the review of a sample of audits of PIEs. From early 2020, IAASA will make quality assurance review reports on PIE audit firms available to the public.
The purpose of the guide is to assist readers in understanding IAASA’s public reports on the quality assurance review of PIE audit firms. The guide sets out what users can expect from the quality assurance review reports and explains how the quality assurance review process drives the form and content of the reports on each quality assurance review.
The guide sets out the following:
- Key content in published reports on quality assurance reviews;
- The purpose and design of a quality assurance review;
- IAASA’s grading policy for findings arising in relation to the effectiveness of the design or implementation of a PIE audit firm’s quality control system and for each of the PIE audits inspected as part of a quality assurance review; and
- The content of a report on quality assurance reviews and limitations of these reports.
The appendices to the guide include an outline of a quality assurance review report. In summary, a report on the quality assurance review includes:
- A brief overview of the PIE audit firm;
- Explanation of the quality assurance review process;
- The scope of IAASA’s quality assurance review;
- An overall review of the PIE audit firm’s quality;
- The results of the quality assurance review; and
- The results of follow-up procedures.
Should you have any further queries, please contact IAASA.