Quality Control for Audits of Historical Financial Information
Introduction
1. The purpose of this Philippine Standard on Auditing (PSA) is to establish
standards and provide guidance on specific responsibilities of firm personnel
regarding quality control procedures for audits of historical financial information,
including audits of financial statements. This PSA is to be read in conjunction
with Parts A and B of the Code of Ethics for Professional Accountants in the
Philippines (the Philippine Code).
2. The engagement team should implement quality control procedures that are
applicable to the individual audit engagement.
3. Under Philippine Standard on Quality Control (PSQC) 1, “Quality Control for
Firms that Perform Audits and Reviews of Historical Financial Information, and
Other Assurance and Related Services Engagements,” a firm has an obligation 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 the auditors’ reports issued by the firm
or engagement partners are appropriate in the circumstances.
4. Engagement teams:
(a) Implement quality control procedures that are applicable to the audit
engagement;
(b) Provide the firm with relevant information to enable the functioning of
that part of the firm’s system of quality control relating to independence;
and
(c) Are entitled to rely on the firm’s systems (for example in relation to
capabilities and competence of personnel through their recruitment and
formal training; independence through the accumulation and
communication of relevant independence information; maintenance of
client relationships through acceptance and continuance systems; and
adherence to regulatory and legal requirements through the monitoring
process), unless information provided by the firm or other parties suggests
otherwise.
PSA 220 (Revised)
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Definitions
5. In this PSA, the following terms have the meanings attributed below:
(a) “Engagement partner” – the partner or other person in the firm who is
responsible for the audit engagement and its performance, and for the
auditor’s report that is issued on behalf of the firm, and who, where
required, has the appropriate authority from a professional, legal or
regulatory body;
(b) “Engagement quality control review” – a process designed to provide an
