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Chapter 43 4
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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