A robust system of quality control must be in place for all auditors. For engagements undertaken in compliance with ASAE 3000, 3100 or 3410 , the audit team leader must ensure the quality control system complies with ASQC 1
Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements.
Other quality control frameworks that may be of use include ISO 9001 and APES 3202.
While providing a robust framework, these systems may not have been designed with consideration of risks specific to audits conducted for schemes administered by the Clean Energy Regulator. Therefore, as part of the preparing procedures it is recommended that the audit team leader check that their quality control framework will be effective in managing the audit risk.
An effective framework for managing audit risk has the following characteristics:
ASQC 1 requires the audit team leader to belong to a firm that establishes and maintains a system of quality control. Key elements that audit team leaders should be aware of include:
Before preparing and agreeing engagement terms, the audit team leader must consider if the audit team are collectively appropriately skilled to perform the engagement, and if the engagement being proposed can be accepted. Client and engagement acceptance considerations must be documented and must include:
In addition to those requirements noted above, acceptance considerations should include:
Where issues arise, they should be discussed with the audited body and the audit team leader may choose not to accept the engagement. Such discussions and decisions must be documented by the auditor.
2 International Standards Organisation ISO 9001:2008
Quality Management Systems; Auditing and Assurance Standards Board ASQC 1
Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements; and Accounting Professional and Ethical Standards Board APES 320 Quality Control for Firms.
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