TWSQC1 Quality Control for Public Accounting Firms 　　　　

Status

Revised by Auditing Standards Committee in Taiwan on 4 October, 2022

Summary

This Standard applies to all firms of professional accountants in respect of audits and reviews of financial statements, and other assurance and related services engagements. The nature of the policies and procedures developed by individual firms to comply with this Standard will depend on various factors such as the size and operating characteristics of the firm, and whether it is part of a network.

TWSA220 Quality Control for Audit of Historical Financial Information sets out additional standards and guidance on the responsibilities of firm personnel regarding quality control procedures for performing individual engagements on audits of financial statements.

The objective of the firm in establishing a system of quality control is to provide it with reasonable assurance that:

  • The firm and its personnel comply with professional standards and regulatory and legal requirements; and
  • Reports issued by the firm or engagement partners are appropriate in the circumstances.

The firm shall establish a system of quality control that 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.
  • Monitoring.

The firm’s quality control policies and procedures shall be:

  • Documented; and
  • Communicated to the firm’s personnel.
Such communication shall describe the quality control policies and procedures and the objectives they are designed to achieve, and include the message that each individual has a personal responsibility for quality and is expected to comply with these policies and procedures.

Effective date

This Standard is effective from 15 December, 2022.
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