Monitoring

Monitoring

45 The quality control requirements for firms issued by a professional accounting body, require the firm to establish policies and procedures designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate, operating effectively and complied with in practice. The engagement partner ordinarily considers the results of the monitoring process as evidenced in the latest information circulated by the firm and, if applicable, other network firms. The engagement partner ordinarily considers whether:

(a) deficiencies noted in that information may affect the audit engagement; and

(b) the measures the firm took to rectify the situation are sufficient in the context of the audit.

46 A deficiency in the firm’s system of quality control does not indicate that a particular audit engagement was not performed in accordance with Auditing Standards and regulatory and legal requirements, or that the auditor’s report was not appropriate.