Page 68 - AAA Integrated Workbook STUDENT S18-J19

Chapter 5

Monitoring

Quality control policies alone do not ensure good quality work. They must be
implemented effectively. Therefore the firm must evaluate:

 Adherence to professional standards and regulatory/legal requirements.

 Whether quality control procedures have been implemented on a day-to-day
basis.

 Whether the firm's quality control policies and procedures are effective so that
reports issued by the firm are appropriate in the circumstances.

Firms should carry out post-issuance or 'cold' reviews to ensure that quality control
procedures are adequate, relevant and operating effectively.

Post-issuance (cold) review

Purpose To assess whether the firm's policies and procedures
were implemented during an engagement and to identify
any deficiencies therein

When After the auditor's report has been signed

Which files A selection of completed audit files

Conducted by A dedicated compliance or quality department / a
qualified external consultant / an independent partner

Matters considered Working papers should demonstrate that:

 Sufficient appropriate evidence has been obtained

 All matters were resolved before issuing the
auditor's report

 All working papers should be:

 On file

 Completed

 Signed as completed

 Evidenced as reviewed

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