b) International standard in audit 220(ISA 220) “quality control for audit financial statements” gives 6 main...

b) International standard in audit 220(ISA 220) “quality control for audit financial statements” gives 6 main requirements of quality control procedures for an audit of financial statements of the audit firm.
List the any three of the six elements of quality control and provide one example of a policy or procedure that can be used to fulfil each of the three elements listed. b)

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Expert Solution

1. Leadership Responsibilities for Quality on Audits: The engagement partner shall take responsibility for the overall quality on each audit engagement to which that partner is assigned; so, there must be a policy in the firm of auditors that the engagement partner must brief the audit assistants on the audit tools frequently, and take such other leadrships steps.

2. Relevant Ethical Requirements: One of the ethical requirement is Independence. There must be a policy to list out and update all the relationships that threat independence, of all the partners of the firm of auditors and to review it at frequent intervals as a check on independence.

3. Acceptance and Continuance of Client Relationships and Audit Engagements: The auditor shall be in frequent contact with the client to look out for any information that may cause the auditor to decline the audit engagement.

See https://www.ifac.org/system/files/downloads/a010-2010-iaasb-handbook-isa-220.pdf for elaborations on the requirements. It starts from page 8 of the PDF.

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jeff jeffy answered 1 month ago

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