Over 40 senior audit professionals from 23 international networks of accounting firms met yesterday to share their experiences, industry insights, and current practices in establishing and strengthening global internal inspection processes, at a workshop organized by the Forum of Firms (Forum). The Forum assembled a group of experts to discuss new developments, including innovations in inspection organization, methodology and staffing, practical implementation issues, and processes for internal reporting.
"This workshop was designed to provide participants with a better understanding of current trends and practices as well as an opportunity for audit partners to exchange views and experiences in their continuing efforts to manage high-quality audit practices," says Nick Fraser, Workshop Chairman and Chair, Transnational Auditors Committee.
Every member of the Forum must follow international professional standards on quality control at the firm level and for each transnational audit engagement: International Standard on Quality Control 1 (ISQC 1) and International Standard on Auditing 220 (ISA 220) as issued by the International Auditing and Assurance Standards Board. These standards require firms to establish a system of quality control to provide them 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 partners are appropriate in the circumstances. Additionally, Forum members must conduct regular globally coordinated internal inspection reviews to monitor adherence to these standards across their networks.
"The requirement for Forum members to conduct these globally coordinated inspections is a unique and challenging obligation of Forum membership, which is just one example of the Forum's ongoing commitment to facilitating continuous improvements in the quality of transnational audits worldwide," concludes David Maxwell, Chair, Forum of Firms.
About the Forum of Firms
The Forum of Firms (www.ifac.org/Forum_of_Firms) is an association of networks of international accounting firms that perform transnational audits. Members of the Forum have committed to adhere to and promote the consistent application of high-quality audit practices worldwide, including the use of International Standards on Auditing, and the maintenance of appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board. Through their organizations, members also conduct globally coordinated internal quality assurance reviews on a regular basis and have policies and methodologies that conform to the International Federation of Accountants' Code of Ethics for Professional Accountants. The Transnational Auditors Committee is the Executive Committee of the Forum of Firms and a committee of the International Federation of Accountants.