ASA 220 - Quality Control for Audits of Historical Financial Information - April 2006
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Main Features
This Auditing Standard establishes mandatory requirements and provides explanatory guidance on specific responsibilities of firm personnel regarding quality control procedures for an audit of a financial report. This Auditing Standard:
(a) requires the engagement team to implement quality control procedures that are applicable to the individual audit engagement;
(b) emphasises the engagement partner’s leadership responsibilities in relation to the quality of audits;
(c) explains the ethical requirements, including independence, of the engagement team in relation to the audit engagements;
(d) emphasises the engagement partner’s responsibility regarding acceptance and continuance of client relationships and specific audit engagements;
(e) requires the appropriate assignment of engagement teams;
(f) explains the requirements of the engagement team regarding engagement performance, including appropriate consultation and policies and procedures to follow when differences of opinions arise;
(g) emphasises the requirement for an engagement quality control review; and
(h) requires the engagement partner to consider information circulated by the firm on its monitoring process, and whether any deficiencies noted and rectifying measures taken by the firm have implications for the audit engagement.