ACCA AAA ^INT Syllabus C. Practice Management - Principles & Purpose - Notes ^{2 / 6}

This is to decrease the risks of:

• Litigation against us for professional litigation

• Incorrect Audit opinion and hence an increased investor confidence in the financial statements

There are 2 standards on Quality Control

1. At the FIRM level International Standard on Quality Control 1 (ISQC 1) – Quality Control for firms that perform audits and reviews

2. At the individual AUDIT level ISA 220 – Quality Control for audits of historical financial information

ISQC 1 (firm level)

ISQC 1 identifies six building blocks of a firm’s system of quality control:

1. Ethics

2. Client Relationships

3. Leadership

4. Human Resources

5. Engagement Performance

6. Monitoring

We will look at the above in more detail in the next section. See you there, hotpants....