Question

What professional standards require accounting firms to develop quality controls for their audit practices? what key issues should such quality controls address? In commenting on Deloitte's quality controls, the PCAOB referred to the culture of the firm. what are the key factors or conditions that influence the culture within an accounting firms audit practice?

Answer 1

Professional Standards required by accounting firms to develop quality control in their audit practices are:

Integrity: It addresses straight forwardness, honesty and discipline.

Objectivity: It tells about being objective in decision making rather than being subjective.

Professional Competence: It addresses the key element like upadating to the recent developments in field of audit and accounts.

Confidentiality: It addresses that the auditor should not disclose sensitive information of client unless required by law.

Professional Behaviour: Auditor should maintain professional behaviour while conducting audit.

The key factors or conditions that influence the culture within an accounting firms audit practice are:

1. Consideration of gender awareness

2. Composition of management team

3. Staff diversity

4. Flexible work practices

5. Family friendly policies

6. Corporate social responsibility programmes etc...