Methodology for Preparation of Audit Entities to External Control of the Quality of Audit Services
The requirements to the system of control over the quality of audit services are analyzed, which are specified in the Law of Ukraine “Audit of Financial Statements and Auditing” from 21.12.2017 No 2258-VIII; Directive of the Ministry of Finance of Ukraine “Approval of the Procedure for Inspection of the Quality Control of Audit Services” from 29.08.2019 No 362; Resolution of the Council for Supervision over Auditing at the State Institution “The Body of Public Supervision over Auditing” from 30.08.2019 No 6/7/13 “Information Questionnaire of Auditing Entity”. It is demonstrated that the quality control system requires corrections of the following: responsibilities of administration and staff of auditing entities for use of the adopted intra-firm provisions on the quality control system, requirements of ISQC1, IAS, the Law of Ukraine “Audit of Financial Statements and Auditing”; the requirements to staff (quality controller, reviewer, assignment partner); identification of threats to the independence and the auditor’s response on the assessed threats; the requirements to reviews of complaints, complicated issues; issues related with non-stop professional training of auditors. Special attention of auditors need to be drawn to the fact that the policies and procedures of the quality control system do not have to be confined to the audit of financial statements, but have to apply to other assignments on giving confidence and related auditor services. Besides that, assessment of threats to the independence has to be conducted for non-auditor services specified in Article 6 of the aforementioned Law of Ukraine.
The studies conducted by the author allowed to elaborate procedures for quality control of auditor services; measures to stimulate staff of auditing entities to scrutinize requirements to implementation of the quality control system; obligating documents of auditing firms on assessment of ethical threats; sharing of duties among assignment group members; requirements to qualification of the key partner, quality controller; identification of auditor assignments; solutions of complicated issues and their documenting, measures on control of the assignment at the final phase and quality control of the assignment. The proposed measures are supposed to help auditing entities revise the already operating quality control systems in a timely manner, which will facilitate supply of high quality information to all the users of auditing reports, external quality controllers from the Body of Public Supervision over Auditing and the Auditor Chamber of Ukraine.
Proskurina, N. M., Kovalenko, V. P. (2012). Yakist audytorskykh posluh v Ukraini: realii ta perspektyvy [The quality of audit services in Ukraine: reality and perspectives]. Ekonomichnyi chasopys-ХХI – Economic Annals-XXI, 9–10, 53–57 [in Ukrainian].
Vasyliuk, M. M. (2013). Kontrol yakosti audytorskykh posluh yak neobkhidna umova reformuvannia kontrolnoho seredovyshcha [Quality control of auditing services as a prerequisite for reforming the control environment]. Krymskyi ekonomichnyi visnyk – Crimean Economic News, Vol. 4 (05), 29–31 [in Ukrainian].
Vasyliuk, M. M. (2019). Kontseptualni osnovy yakosti audytu [Conceptual bases of audit quality]. Ivano-Frankivsk: Vydavnytstvo DVNZ Prykarpatskoho natsionalnoho universytetu imeni Vasylia Stefanyka [in Ukrainian].
Vasyliuk, M. M. (2019). Protsedurne zabezpechennia zovnishnoho kontroliu yakosti audytu finansovoi zvitnosti [Procedural providing of external quality control of audit financial statements]. Collected papers of the Suchasni mizhnarodni ekonomichni vidnosyny: stanovlennia ta osoblyvosti rozvytku [Modern international economic relations: formation and features of development]: Vseukrainska naukovo-praktychna konferentsiia (17 serpnia 2019 roku) – All-Ukrainian Scientific and Practical Conference. (pp. 94–97). Odesa [in Ukrainian].
Riadska, V. (2014). Analiz zmistu robochoi nezalezhnosti v audyti [Analysis of content of working independence in audit]. Visnyk Chernihivskoho derzhavnoho tekhnolohichnoho universytetu – Bulletin of Chernihiv National University of Technology, Vol. 1. 253–259 [in Ukrainian].
Redko, O. (2009). Yakist audytorskykh posluh: filosofiia ta mifolohiia [The quality of audit services: philosophy and mythology]. Bukhhalterskyi oblik i audyt – Accounting and Audit, 1, 46–54 [in Ukrainian].
Bondar, V. P., & Bondar, Yu.V. (2015). Yakist v audyti ta deiaki aspekty upravlinnia yakistiu [Audit quality and some aspects of quality management]. Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu – Problems of theory and methodology of accounting, control and analysis, 1 (31), 36–64 [in Ukrainian].
Pro audyt finansovoi zvitnosti ta audytorsku diialnist: Zakon Ukrainy vid 21.12.2017 r. № 2258-VIII [On the Audit of Financial Reporting and Audit Activity. Law of Ukraine of December 27, 2017 № 2258-VIII]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/2258-19 [in Ukrainian].
Pro bukhhalterskyi oblik ta finansovu zvitnist v Ukrainі: Zakon Ukrainy vid 16.07.1996 r. № 996-ХIV, stanom na 01.01.2018 r. [On Accounting and Financial Reporting in Ukraine. Law of Ukraine of July 16, 1996 № 996-ХIV as of October 05, 2017]. zakon4.rada.gov.ua. Retrieved from https://zakon4.rada.gov.ua/laws/ show/996-14 [in Ukrainian].
Metodychni materialy, poviazani z provedenniam perevirok z kontroliu yakosti audytorskykh posluh [Methodological materials related to checking on quality control of audit services]. (2019). www.apob.org.ua. Retrieved from http://www.apob.org.ua/?p=1476 [in Ukrainian].
International Code of Ethics for Professional Accountants. (2018). IESBA Standards & Pronouncements. www.ethicsboard.org. Retrieved from https://www.ethicsboard.org/publications/final-pronouncement-restructured-code-19
Mizhnarodni standarty kontroliu yakosti, audytu, ohliadu, inshoho nadannia vpevnenosti ta suputnikh posluh: vydannia 2016–2017 rokiv [International standards for quality control, audit, review, other assurance and related services: Edition 2016–2017]. (2016). apu.com.ua. Retrieved from http://apu.com.ua/1151-miznarodni-standarti-kontrolu-yakosti-2016-2017 [in Ukrainian].
Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. 2016–2107 Ed. (2017). Vol. I. www.apu.net.ua. Retrieved from https://www.apu.net.ua/attachments/article/1151/2017_часть1.pdf
Abstract views: 88 PDF Downloads: 65
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.