This document discusses quality control for audits and other assurance engagements. It explains that firms must implement quality control procedures to ensure engagements are performed according to standards and legal requirements. The key elements of a quality control system discussed are leadership, ethics, acceptance and continuance of clients, human resources, engagement performance, and monitoring procedures. Firms need policies and procedures in each of these areas to maintain quality and protect against liability.

1. Quality Control
Quality control for audits, reviews, and other assurance engagement
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

2. Learning outcome
 Explain the principles and purpose of quality control of audit and other
assurance engagement.
 Describe the elements of a system of quality control relevant to a given firm.
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

3. Principles and purpose of quality control
 What’s the purpose of audit?
 Enhance the intended users’ confidence.
 How to make the intended user confidence with the audit report?
 Engagements must be performed with quality
 Failure to maintained quality
 Loss of confidence by client and intended users.
 Sue against the audit firm.
 Therefore firms must:
 Perform work that complies with professional standards and regulatory and legal
requirement.
 Issue report that are appropriate in the circumstances
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

4. Quality
control ISA
220 / ISQC1
Leadership
Ethics
Acceptance
and
continuance
Human
Resource
Engagement
performance
Monitoring
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

5. Leadership
 Must establish policies and procedures to promote internal culture.
 This requires the firm’s management team to:
 Establish policies and procedures to address performance evaluation, compensation and
promotion to demonstrate commitment to quality.
 Ensure commercial consideration does not override the quality.
 Ensure resources are sufficient
 Assign operational responsibility to those with sufficient and appropriate experience,
ability and authority to implement those QC procedure.
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

6. Ethics
 Rule based : By law (MIA)
 Principle based fundamental principles:
 Integrity, objectivity, professional competence and due care, confidentiality, professional
behaviour.
 Threats to independence and safeguards
 Self-interest, familiarity, self-review, advocacy, Intimidation
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

7. Acceptance and continuance
 Matter to consider prior to acceptance
 Fee, competence, risks, resource, independence and etc.
 Professional clearance
 Contact resigned auditor with asking reason behind.
 Terms of engagement
 ISA 210
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

8. Human resources
 Ensure engagement team collectively have the competence and capabilities to
perform the audit in accordance with professional standards.
 This includes
 Knowledge of professional standards.
 Knowledge of relevant industries in which the clients operates.
 The ability to apply judgement
 Understanding the firm’s quality control policies and procedure
 Thinking about quality implicates at every stage of HR.
 Recruitment, pay, induction, training, personal characteristic, disciplinary.
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

9. Engagement performance
 Design policies and procedures (P&P) to ensure engagements are performed to a
satisfactory standard. P&P should cover:
 Matter relevant to promoting consistency in the quality of engagements
 Supervision responsibilities.
 Review responsibilities.
 Engagement quality control review (EQCR/Hot review)
 Pre-issuance review
 Applied to listed or high risks clients (public interest, unusual, laws/regulations)
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.

10. Monitoring
 QC P&P alone do not ensure good quality work. They must be implemented
effectively. Therefore the firm must evaluate:
 Adherence to professional standards and regulatory/legal requirement
 Whether QC procedures have been implemented on day-to-day basis.
 Whether the firm’s QC P&P are effective?
 Firms should carry out post-issuance or “cold” reviews to ensure that QC
procedures are adequate, relevant and operating efficiently.
Contents of this presentation are adapted from the current of legislation at the time of
presentation. No person should rely on the content of this publication without first obtaining
professional advice. We, KTP or THK, shall expressly disclaim all and any liability and responsibility
to any person in reliance in whole or any part of this contents.