Question

The following are comments from practitioners about Quality Control.

Quality Control and peer review in the public accounting profession are governmental methods of regulating the profession. There are two effects of regulation. First it gives a competitive advantage to a national CPA firm because they already need structures to administer their complex organizations. Quality control requirements do not significantly affect their structure. Smaller firms now need a more costly organizational structure which has proven unnecessary because of existing partner involvement on the engagement. The major advantage smaller firms have traditionally is a simpler and efficient organizational structure. Now that has been taken away. Second, quality control and peer review are not needed to regulate the profession. The first four elements of quality control have always existed.

Do you agree with these comments relating to the public accounting profession?
Do you agree with these comments if they were directed towards the Internal audit profession?
Are quality control requirements worth their cost?

Please answer in full sentence format, 4-5 sentences for each question.

Answer 1

1. Do you agree with these comments relating to the public accounting profession?

I do not agree with the given comments relating to the public accounting profession. In my views, quality control is a great way of keeping the duties and responsibilities of a public accounting professional in check. A public accounting profession needs to have a fair approach to facilitate his accounting practices. Hence quality control is an essential tool for this role. Peer review helps in keeping the professional informed about the things he is doing good and the aspects where he needs improvement. Hence quality control and peer review help in enhancing the overall effectiveness of the public accounting professional.

2. Do you agree with these comments if they were directed towards the Internal audit profession?

An internal audit profession needs to have a transparent as well as an unbiased approach in his profession. Auditing is a critical regulatory job and needs to have a standard approach in every situation. Quality control helps in maintaining a check on this that the professional is not treating any of the entities, being audited, differently. Peer review, if taken constructively, helps the professional in enhancing the overall effectiveness of the role.

3. Are quality control requirements worth their cost?

Quality control requirements are worth every penny cost. Quality control helps in maintaining a check in the way a job is being performed. Any kind of compliance adherence would get facilitated with the quality control requirements. Moreover it helps in enhancing the overall effectiveness of the way a role can be performed. Hence quality control requirements are essential to be adhered.