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    Professional Review and Training Center (PRTC)

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    Mark Lags
    The Professional Review and Training Center provides training on professional standards, quality control, and professional liabilities for auditors. The Auditing and Assurance Standards Council establishes auditing standards and oversees quality control, which involves firm policies and oversight of engagement performance, monitoring of quality control, and human resource management. Auditors can be held liable for negligence depending on the degree of wrongdoing and relationship to plaintiffs.

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    Professional Review and Training Center (PRTC)

    Uploaded by

    Mark Lags
    68 views28 pages
    The Professional Review and Training Center provides training on professional standards, quality control, and professional liabilities for auditors. The Auditing and Assurance Standards Council establishes auditing standards and oversees quality control, which involves firm policies and oversight of engagement performance, monitoring of quality control, and human resource management. Auditors can be held liable for negligence depending on the degree of wrongdoing and relationship to plaintiffs.

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    AT.2520_Professional-Standards-including-Quality-Control.pptx

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    The Professional Review and Training Center provides training on professional standards, quality control, and professional liabilities for auditors. The Auditing and Assurance Standards Council establishes auditing standards and oversees quality control, which involves firm policies and oversight of engagement performance, monitoring of quality control, and human resource management. Auditors can be held liable for negligence depending on the degree of wrongdoing and relationship to plaintiffs.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    68 views28 pages

    Professional Review and Training Center (PRTC)

    Uploaded by

    Mark Lags
    The Professional Review and Training Center provides training on professional standards, quality control, and professional liabilities for auditors. The Auditing and Assurance Standards Council establishes auditing standards and oversees quality control, which involves firm policies and oversight of engagement performance, monitoring of quality control, and human resource management. Auditors can be held liable for negligence depending on the degree of wrongdoing and relationship to plaintiffs.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 28

    Professional Review and

    Training Center (PRTC)

    Professional Standards,
    Quality Control, and
    Professional Liabilities
    (AT.2520)
    Leomar R. Cabarles
    Professional
    Standards
    Auditing and Assurance Standards Council

    • Created in December 2005,


    under RA 9298
     By the PRC
     Recommended by BOA

    • Replaced ASPC
    (PICPA-established)
    AASC

    Three-year term, renewable for another


    AASC
    Quality Control
    Nature of QC

    • Firm’s policies and


    procedures

    • to ensure quality
    services
    Extent of QC

    • Size of auditing firm

    • Operating characteristics

    • Whether part of a
    network
    QC Standards

    • PSQC 1 – Audits, Reviews of


    FS, and Other Assurance
    and Related Services
    Engagements

    • PSA 220 – Audit of Financial


    Statements
    HEAL ME DOC CO
    Leadership Responsibility

    • Tone at the top (partner


    attitudes, behaviors, and
    staff messages)

    • CEO or managing partners


    (firm level)

    • Support for quality work—


    culture of quality
    Ethical Requirements

    • Compliance with
     Fundamental principles
     Independence

    • Written confirmation of
    compliance
     At least annually
    Acceptance and Continuance

    • Competence and capabilities

    • Compliance with ethics

    • Integrity of client

    • Decline engagement
     Unable to deliver quality
     Exposed to great risks
    Human Resources

    • Sufficient personnel
    (recruitment and retention)

    • CPD

    • Assignment to teams

    • Disciplines noncompliance

    • Rewards compliance
    Engagement Performance

    • Planning, supervision,
    and review

    • Consultation

    • Differences of opinion

    • EQCR
    Monitoring

    • Checks if QC are effective

    • Cyclical inspection
     3-year period
     At least 1 engagement per
    partner

    • Communicate results
     At least annually
    Professional
    Liabilities
    Degree of Wrongdoings

    None Reasonable care

    Ordinary No reasonable care


    Negligence

    Gross No care; reckless behavior


    Negligence

    Fraud Intent to deceive


    Auditor’s Liability

    Plaintiff Minimum Basis


    Client Ordinary
    (Due to privity of negligence
    contract)

    Third party:
    Primary beneficiary Ordinary
    Others negligence
    Gross negligence
    -now do the DIY drill-
    DIY Drill Answers

    1. B
    2. D
    3. C
    4. B
    5. C
    DIY Drill Answers

    6. C
    7. A
    8. C
    9. C
    10. D
    DIY Drill Answers

    11. B
    12. B
    13. B
    14. D
    15. D
    DIY Drill Answers

    16. B
    17. D
    18. C
    19. C
    20. B
    DIY Drill Answers

    21. D
    22. C
    23. C
    24. D
    25. A
     end of AT.2520 

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