Quality control in audit firms in practice

Quality control is something that every company that cares about the quality of its goods and services must take into consideration. It is an important element of business management, and the responsibility for its development, implementation and monitoring lies on the shoulders of management. It turns out that the audit firms themselves are also subject to quality control.

What legal acts regulate quality control in audit firms?

The Act on Statutory Auditors, Auditing Companies and Public Oversight, of 11 May 2017, sets out all the standards that apply to the operations of audit firms and entities offering services of a similar nature. This legal act includes all the rules of internal quality control in entities authorized to audit financial statements and thus standardizes the general requirements for internal quality control systems in audit firms.

What does quality control look like in an auditing firm?

Every firm that carries out financial supervision over other enterprises is required to develop and implement an internal quality control system that is compliant with national standards. However, the systems may differ in individual cases due to such factors as the size of the enterprise or the scale of its activity and are ultimately determined by the auditor that is appointed by the company itself. Audit firms are also obliged to monitor the adequacy and effectiveness of all their activities, as well as to prepare an annual report. The documentation may include proposed changes and should be kept for at least five years.

In practice, all these procedures are intended to ensure that the services provided are performed in accordance with applicable laws and that the Audit Oversight Commission is not hindered when carrying out oversight.

Audit firms are public trust enterprises, so controlling the quality of their services is extremely important. All activities carried out by statutory auditors are of crucial importance for the functioning of the companies in which they audit financial statements.

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