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Committee on Quality Control

Welcome to the web page of Committee on Quality Control Chairman


Mr. Syed Najmul Hussain ICA Pakistan


Introduction

Audit opinions throughout SAFA should give a certain minimum level of assurance concerning the reliability of financial information of public interest entities. Quality assurance for the statutory audit is fundamental for ensuring good audit quality. Good audit quality implies adding credibility to published financial information and adding value and protection to shareholders, investors, creditors and other stakeholders. Quality assurance is the profession's principal means of assuring the public and regulators that auditors and audit firms are performing at a level that meets the established auditing standards and ethical rules. Quality assurance also allows the profession to encourage quality improvements. SMO 1 issued by IFAC requires that each member body should ensure a mandatory quality assurance review program is in place for those of its members performing audits of financial statements of, as a minimum, listed entities.

Scope

At this moment there are two internationally accepted standard defining minimum requirements for quality assurance which could be used as a benchmark for national quality assurance systems, which are ISA 220 and ISQC 1.

The scope of this initiative on quality assurance is the SAFA statutory audit profession as a whole and it aims at setting a benchmark for Member body quality assurance systems throughout the SAFA for audits of listed and public interest entities. Additional quality controls of the statutory audit are at the discretion of Member bodies.

Current Status in SAFA

The current national quality assurance systems differ in several aspects such as the scope of the quality review, being mandatory or voluntary, the cycle of coverage and the existence of public reporting. Such differences make it difficult to assess whether national quality assurance systems meet relevant minimum requirements.

The Institute of Chartered Accountants of Bangladesh (ICAB), Institute of Chartered Accountants of India (ICAI) and Institute of Chartered Accountants of Pakistan (ICAP) have established the Quality Assurance Review Program as a measure to assess and keep upgraded the quality of services of their members. The recent initiatives of these SAFA member bodies have included review of the extant framework in the light of the related pronouncements of the International Federation of Accountants (IFAC). ICAB and ICAI carry out this program on a “Peer Review” basis while ICAP conduct this program by employing full time independent chartered accountants.

Objectives
  • To coordinate and facilitate the individual professional bodies in enhancing their quality assurance processes so as to enable them to comply with the IFAC standards of quality control
  • To serve as a forum for sharing of each others experiences and learning
  • To arrange or co-ordinate training programs and workshops to improve the standard of audit.
  • To assist IFAC / other regional bodies in introducing / upgrading quality assurance programs in developing countries.