This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

IAASB consultation on audit quality framework

  • IAASB (International Auditing and Assurance Standards Board) (lt gray) Image

16 Jan 2013

The International Auditing and Assurance Standards Board (IAASB) has released a new Consultation Paper addressing audit quality.

The consultation paper, titled A Framework for Audit Quality (link to IFAC website) seeks input from stakeholders internationally who have an interest in continually enhancing audit quality, including regulators, audit committees, investors, and audit firms.

The paper describes a number of factors that contribute to increasing the likelihood of quality audits being consistently performed and encourages audit firms and other stakeholders to challenge themselves about whether there is more that they can do to increase audit quality in their particular environments.

In seeking to meet these objectives, the proposed framework contains the following elements:

  • Internal factors - values, ethics, and attitudes; knowledge, experience and time; and audit process and quality control procedures
  • Outputs - at the engagement (e.g audit reports, audited financial statements) and firm/national levels (e.g. transparency reports)
  • Interactions - effective interactions between:
    • Auditors - and management, those charged with governance, users, regulators
    • Management - and those charged with governance, regulators, users
    • Those charged with governance - and regulators, users
    • Regulators and users
  • Contextual factors - including such items as business practices and commercial law, laws and regulations relating to financial reporting, and broader cultural factors.

More information on each of these elements is detailed in the paper, providing key attributes and examples. A number of 'areas to explore' are also included in the paper.

The consultation paper is open for comment until 15 May 2013.  Click for IAASB press release (link to IFAC website).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.