SAS No. 44 Qulity Control for Audits of Historical Financial Information     


Issued by Auditing Standards Committee in Taiwan on 1 September, 2007.


This Statement deals with the specific responsibilities of the auditor regarding quality control procedures for an audit of financial statements. It also addresses the responsibilities of the engagement quality control reviewer.

Quality control systems, policies and procedures are the responsibility of the audit firm. The firm has an obligation to establish and maintain a system of quality control to provide it with reasonable assurance that (a) The firm and its personnel comply with professional standards and applicable legal and regulatory requirements; and (b) The reports issued by the firm or engagement partners are appropriate in the circumstances.

Within the context of the firm’s system of quality control, engagement teams have a responsibility to implement quality control procedures that are applicable to the audit engagement and provide the firm with relevant information to enable the functioning of that part of the firm’s system of quality control relating to independence.

The system of quality control includes policies and procedures that address each of the following elements:

  • Leadership responsibilities for quality within the firm;
  • Relevant ethical requirements;
  • Acceptance and continuance of client relationships and specific engagements;
  • Human resources;
  • Engagement performance; and
  • Monitoring.

Documentation of consultations with other professionals that involve difficult or contentious matters that is sufficiently complete and detailed contributes to an understanding of the issue on which consultation was sought and the results of the consultation, including any decisions taken, the basis for those decisions and how they were implemented.

An engagement quality control review for audits of financial statements of listed entities includes considering the following:

  • The engagement team’s evaluation of the firm’s independence in relation to the specific audit engagement.
  • Significant risks identified during the engagement and the responses to those risks, including the engagement team’s assessment of, and response to, the risk of fraud.
  • Judgment made, particularly with respect to materiality and significant risks.
  • Whether appropriate consultation has taken place on matters involving differences of opinion or other difficult or contentious matters, and the conclusions arising from those consultations.
  • The significance and disposition of corrected and uncorrected misstatements identified during the audit.
  • The matters to be communicated to management and those charged with governance and, where applicable, other parties such as regulatory bodies.
  • Whether audit documentation selected for review reflects the work performed in relation to the significant judgments and supports the conclusions reached.
  • The appropriateness of the auditor’s report to be issued.

Effective date

This Statement is effective from 1 January, 2008.

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