Reviewing

In accordance with the requirements of International Standard on Quality Control (ISQC 1), an audit practice should establish policies and procedures designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate, operating effectively and complied with in practice (audit compliance review).

Such policies and procedures should include an ongoing consideration and evaluation of the firm’s system of quality control (whole practice review), including a periodic inspection of a selection of completed engagements (cold file review). The selection of the reviewer and the frequency of this review is determined by the size of the audit practice and in accordance with the Guidance Note on Compliance Reviews under ‘Clarified’ ISQC 1 as issued by the Quality Assurance Oversight Committee (February 2011) of the Accountancy Board of Malta.

WHOLE PRACTICE REVIEW

The Whole Practice Review focuses on whether the requirements of International Standard on Quality Control (ISQC 1), have been implemented and addressed by the audit practice.

INDEPENDENT REVIEW ON . . .

• Transparency Report (auditors auditing Public Interest Entities)
• Structure of practice and its associated undertakings
• Practice’s policies and procedures manual
• Professional indemnity insurance cover
• Values, Ethics and Attitudes of the practice
• Independence declarations for auditors and staff
• Client Acceptance and Continuance
• Practice marketing and promotion
• Attracting and Retaining Talent
• CPE and staff training records
• Results of any staff appraisal
• Audit methodology programme usage
• Procedures used to issue financial statements
• Interaction with Regulators
• Follow up action taken following previous reviews
• Litigation environment

reviewing that the audit practice’s policies and procedures relating to the system of quality control are relevant, adequate, and operating effectively

evaluation of the firm’s system of quality control, including, on a cyclical basis, inspection of at least one completed engagement for each audit engagement partner

audit compliance

review

• Selected audit file(s) and also includes a whole practice review. This is the most comprehensive review that an audit practice can undertake as it covers both whole practice review considerations and also a selection of a completed audit engagement (s) otherwise known as cold file review.
• The degree of compliance with quality control policies and procedures, and adherence to professional standards and regulatory and legal requirements
• The relevance and adequacy of the quality control policies and procedures
• The firm’s quality assurance and ethics culture (including evidence that there is written confirmation of compliance with policies and procedures as they relate to independence
• Determination of the effectiveness of the follow-up
• Adherence to professional standards and applicable legal and regulatory requirements;
• Appropriateness of the engagement reports;
• Determination of whether appropriate and sufficient consultation has taken place on difficult or contentious issues;
• Determination of whether there is sufficient and appropriate documentation applicable to the work performed
• Assessment of whether the firm’s quality control policies and procedures have been appropriately applied.

Mr Renzo Farrugia is approved by the Accountancy Board as an Approved Accountancy Board External Quality Assurance Reviewer. He does not hold any portfolio of audit, accountancy or other consultancy clientele. This safeguards his independence, integrity and objectivity when carrying out external reviews of fellow auditors.

Reviewing

In accordance with the requirements of International Standard on Quality Control (ISQC 1), an audit practice should establish policies and procedures designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate, operating effectively and complied with in practice (audit compliance review).

Such policies and procedures should include an ongoing consideration and evaluation of the firm’s system of quality control (whole practice review), including a periodic inspection of a selection of completed engagements (cold file review). The selection of the reviewer and the frequency of this review is determined by the size of the audit practice and in accordance with the Guidance Note on Compliance Reviews under ‘Clarified’ ISQC 1 as issued by the Quality Assurance Oversight Committee (February 2011) of the Accountancy Board of Malta.

WHOLE PRACTICE REVIEW

The Whole Practice Review focuses on whether the requirements of International Standard on Quality Control (ISQC 1), have been implemented and addressed by the audit practice.

INDEPENDENT REVIEW ON . . .

• Transparency Report (auditors auditing Public Interest Entities)
• Structure of practice and its associated undertakings
• Practice’s policies and procedures manual
• Professional indemnity insurance cover
• Values, Ethics and Attitudes of the practice
• Independence declarations for auditors and staff
• Client Acceptance and Continuance
• Practice marketing and promotion
• Attracting and Retaining Talent
• CPE and staff training records
• Results of any staff appraisal
• Audit methodology programme usage
• Procedures used to issue financial statements
• Interaction with Regulators
• Follow up action taken following previous reviews
• Litigation environment

reviewing that the audit practice’s policies and procedures relating to the system of quality control are relevant, adequate, and operating effectively

evaluation of the firm’s system of quality control, including, on a cyclical basis, inspection of at least one completed engagement for each audit engagement partner

audit compliance

review

• Selected audit file(s) and also includes a whole practice review. This is the most comprehensive review that an audit practice can undertake as it covers both whole practice review considerations and also a selection of a completed audit engagement (s) otherwise known as cold file review.
• The degree of compliance with quality control policies and procedures, and adherence to professional standards and regulatory and legal requirements
• The relevance and adequacy of the quality control policies and procedures
• The firm’s quality assurance and ethics culture (including evidence that there is written confirmation of compliance with policies and procedures as they relate to independence
• Determination of the effectiveness of the follow-up
• Adherence to professional standards and applicable legal and regulatory requirements;
• Appropriateness of the engagement reports;
• Determination of whether appropriate and sufficient consultation has taken place on difficult or contentious issues;
• Determination of whether there is sufficient and appropriate documentation applicable to the work performed
• Assessment of whether the firm’s quality control policies and procedures have been appropriately applied.

Mr Renzo Farrugia is approved by the Accountancy Board as an Approved Accountancy Board External Quality Assurance Reviewer. He does not hold any portfolio of audit, accountancy or other consultancy clientele. This safeguards his independence, integrity and objectivity when carrying out external reviews of fellow auditors.

Reviewing

In accordance with the requirements of International Standard on Quality Control (ISQC 1), an audit practice should establish policies and procedures designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate, operating effectively and complied with in practice (audit compliance review).

Such policies and procedures should include an ongoing consideration and evaluation of the firm’s system of quality control (whole practice review), including a periodic inspection of a selection of completed engagements (cold file review). The selection of the reviewer and the frequency of this review is determined by the size of the audit practice and in accordance with the Guidance Note on Compliance Reviews under ‘Clarified’ ISQC 1 as issued by the Quality Assurance Oversight Committee (February 2011) of the Accountancy Board of Malta.

WHOLE PRACTICE REVIEW

The Whole Practice Review focuses on whether the requirements of International Standard on Quality Control (ISQC 1), have been implemented and addressed by the audit practice.

INDEPENDENT REVIEW ON . . .

• Transparency Report (auditors auditing Public Interest Entities)
• Structure of practice and its associated undertakings
• Practice’s policies and procedures manual
• Professional indemnity insurance cover
• Values, Ethics and Attitudes of the practice
• Independence declarations for auditors and staff
• Client Acceptance and Continuance
• Practice marketing and promotion
• Attracting and Retaining Talent
• CPE and staff training records
• Results of any staff appraisal
• Audit methodology programme usage
• Procedures used to issue financial statements
• Interaction with Regulators
• Follow up action taken following previous reviews
• Litigation environment

reviewing that the audit practice’s policies and procedures relating to the system of quality control are relevant, adequate, and operating effectively

evaluation of the firm’s system of quality control, including, on a cyclical basis, inspection of at least one completed engagement for each audit engagement partner

audit compliance

review

• Selected audit file(s) and also includes a whole practice review. This is the most comprehensive review that an audit practice can undertake as it covers both whole practice review considerations and also a selection of a completed audit engagement (s) otherwise known as cold file review.
• The degree of compliance with quality control policies and procedures, and adherence to professional standards and regulatory and legal requirements
• The relevance and adequacy of the quality control policies and procedures
• The firm’s quality assurance and ethics culture (including evidence that there is written confirmation of compliance with policies and procedures as they relate to independence
• Determination of the effectiveness of the follow-up
• Adherence to professional standards and applicable legal and regulatory requirements;
• Appropriateness of the engagement reports;
• Determination of whether appropriate and sufficient consultation has taken place on difficult or contentious issues;
• Determination of whether there is sufficient and appropriate documentation applicable to the work performed
• Assessment of whether the firm’s quality control policies and procedures have been appropriately applied.

Mr Renzo Farrugia is approved by the Accountancy Board as an Approved Accountancy Board External Quality Assurance Reviewer. He does not hold any portfolio of audit, accountancy or other consultancy clientele. This safeguards his independence, integrity and objectivity when carrying out external reviews of fellow auditors.