About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

A88653 1 (2006-09-29)

handle is hein.gao/gaobadvwe0001 and id is 1 raw text is: A 0 Comptroller General Accountability * Integrity * Reliability of the United States United States Government Accountability Office Washington, DC 20548 September 29, 2006 Mr. John Fogarty, Chair Auditing Standards Board American Institute of Certified Public Accountants 1211 Avenue of the Americas New York, NY 10036-8775 Subject: Proposed Statement on Quality Control Standards-A Firm System of Quality Control This letter provides the U.S. Government Accountability Office's (GAO) comments on the Auditing Standards Board's (ASB) July 28, 2006, exposure draft of a proposed Statement on Quality Control Standards (SQCS) -A Firm System of Quality Control. GAO commends the Auditing Standards Board's efforts to strengthen the quality control standards and guidance and thereby enhance the quality of auditors' work. We believe that an audit organization's quality assurance function is a fundamental and critical determinant of audit quality. We disagree, however, with the proposed significant departures from international standards, whereby the specific requirement for periodic inspections is omitted and engagement quality reviews performed prior to the audit report issuance are considered as an option for monitoring. Our concerns are discussed in greater detail below. Our comments on the proposed quality control standard focus on the following areas: * Periodic inspections and other monitoring procedures * Competencies of practitioners-in-charge * Small audit organizations * Engagement quality control review Periodic inspections and other monitoring procedures Paragraph 90 of the proposed standard contains a significant departure from International Statement of Quality Control (ISQC) No. 1 in that it omits a specific requirement for periodic inspections of a selection of completed engagements from the procedures required in a system of quality control. The proposed standard then goes on to give audit organizations a choice among different types of monitoring procedures in paragraph 93 by requiring either engagement quality control reviews, post-issuance reviews of specific engagement documents, or inspection procedures. Engagement quality reviews, however, are conducted prior to issuance of the audit

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most