Isqc 36 Study Guide

ISQC 1 36
INTERNATIONAL STANDARD ON QUALITY CONTROL 1
QUALITY CONTROL FOR FIRMS THAT PERFORM AUDITS
AND REVIEWS OF FINANCIAL STATEMENTS, AND OTHER
ASSURANCE AND RELATED SERVICES ENGAGEMENTS
(Effective as of December 15, 2009)
CONTENTS
Paragraph
Introduction
Scope of this ISQC ................................................................................. 1−3
Authority of this ISQC ............................................................................ 4−9
Effective Date ......................................................................................... 10
Objective ................................................................................................ 11
Definitions ..............................................................................................
A32−A63
Monitoring .............................................................................................. A64−A72
Documentation of the System of Quality Control .................................. A73−A75
International Standard on Quality Control (ISQC) 1, “Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and
Related Services Engagements” should be read in conjunction with ISA 200,
“Overall Objectives of the Independent Auditor and the Conduct of an Audit in
Accordance with International Standards on Auditing.”
QUALITY CONTROL FOR FIRMS THAT PERFORM AUDITS AND REVIEWS OF FINANCIAL
STATEMENTS, AND OTHER ASSURANCE AND RELATED SERVICES ENGAGEMENTS
ISQC 1 38
Introduction
Scope of this ISQC
1. This International Standard on Quality Control (ISQC) 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.
This ISQC is to be read in conjunction with relevant ethical requirements.
2. Other pronouncements of the International Auditing and
(m) Partner – Any individual with authority to bind the firm with respect to the performance of a professional services engagement.
(n) Personnel – Partners and staff.
(o) Professional standards – IAASB Engagement Standards, as defined in the IAASB’s Preface to the International Standards on Quality Control,
Auditing, Review, Other Assurance and Related Services, and relevant ethical requirements.
(p) Reasonable assurance – In the context of this ISQC, a high, but not absolute, level of assurance.
(q) Relevant ethical requirements – Ethical requirements to which the engagement team and engagement quality control reviewer are subject, which ordinarily comprise Parts A and B of the International Ethics
Standards Board for Accountants’ Code of Ethics for Professional
Accountants (IESBA Code) together with national requirements that are more restrictive.
(r) Staff – Professionals, other than partners, including any experts the