Dealing
with compliance issues forms an important part of the everyday running of a modern
accountancy practice. It has always been important for firms to ensure good procedures
are implemented in this area and there must be constant monitoring of these procedures
to ensure they are updated regularly and properly complied with.
International Quality Control Standard 1 (ISQC 1) became effective on 15 June
2005. It is one of the major challenges currently facing firms across the world
from a compliance perspective. Its aim is to establish standards and provide guidance
regarding a firm's responsibilities for its system of quality control for audits
and other assurance and related services engagements. ISQC
1 requires the firm to establish a system of quality control designed to provide
it with reasonable assurance that the firm and its personnel comply with professional
standards and regulatory and legal requirements and that reports issued by the
firm or engagement partner are appropriate in the circumstances. The
standard focuses on six main areas: | o |
Leadership responsibilities for quality within a firm. |
| o | Acceptance
and continuance of client relationships and specific engagements. |
| o |
Engagement performance. |
Much
emphasis is placed on formal documentation. It applies to all firms regardless
of size, although the nature of the policies required will evidently be different
depending on the size of the firm. A practical option for compliance with ISQC
1 is to create an ISQC 1 procedures file. To
assist practices in this regard we have developed an ISQC 1 manual which is comprehensive
yet easy to use. Both UK and International versions of the manual are available.
For more details on this product and information on how to order online click
here.
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