IntroductionIntroduction

Introduction

4 The purpose of this Auditing Standard is to establish mandatory requirements and to provide explanatory guidance on specific responsibilities of firm personnel regarding quality control procedures for audits of historical financial information, including an audit of a financial report.

5 The engagement team shall implement quality control procedures that are applicable to the individual audit engagement.

6 Under the quality control requirements for firms[1] issued by a professional accounting body, a firm has an obligation to establish a system of quality control designed to provide it with reasonable assurance that the firm and its personnel comply with Auditing Standards and that the auditor’s reports issued by the firm or engagement partners are appropriate in the circumstances.

7 In accordance with paragraph 5 of this Auditing Standard, engagement teams are required to implement quality control procedures that are applicable to the audit engagement. Ordinarily, engagement teams:

(a) provide the firm with relevant information to enable the functioning of that part of the firm’s system of quality control relating to independence; and

(b) are entitled to rely on the firm’s systems (for example in relation to capabilities and competence of personnel through their recruitment and formal training; independence through the accumulation and communication of relevant independence information; maintenance of client relationships through acceptance and continuance systems; and adherence to regulatory and legal requirements through the monitoring process), unless information provided by the firm or other parties suggests otherwise.