QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW...
Transcript of QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW...
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Hon. Gerard B. Sanvictores Member, Board of Accountancy
July 16, 2015
QUICK RECIPE ON PREPARING
QUALITY ASSURANCE REVIEW
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
OBJECTIVES
► Recognize what Quality Assurance Review (QAR) is all about ► Recognize the importance of QAR
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
AGENDA
► QAR - the Why and How - A brief backgrounder - Definition - Basis - Parties in implementation - The Program ► Preparing for QAR - During transition - before effectivity - After effectivity - if selected
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
The QAR ► A brief backgrounder
- What happened in 2010 - Developments
► Definition - Simply, a review of the quality control system of CPA practitioners.
- As defined by the BOA: A study, appraisal or review: by an independent reviewer/inspector of the quality of audit of FS and the adoption of best practices through a review of the quality control measures instituted by
CPA Practitioners to ascertain compliance with prescribed professional, ethical
and technical standards.
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
WHAT IS THE BASIS FOR QAR REQUIREMENT
► Legal - RA 9298, The Philippine Accountancy Act of 2004
- BOA Revised Rules and Regulations for the BOA Conduct of Oversight into the Quality of Audits of FS and Operations of CPA Practitioners. [to be issued?]
► PICPA Membership in IFAC
- IFAC SMO 1, Quality Assurance
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
WHO ARE THE PARTIES IN IMPLEMENTATION ► BOA
- Mandated under RA 9298 to implement the QAR
► Council for Accreditation and Quality Control of Practicing CPAs - Created under a MOA dated August 12, 2009 by the BOA,
SEC, BSP and IC
► Quality Assurance Review Office (QARO) - To be organized by BOA, which shall have independence in
the conduct of its operation.
► CPAs in public practice
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
THE QAR PROGRAM
► Coverage - CPAs / Engagements
► Registration - Required for all CPA practitioners.
► Mandatory Coverage - During 3 years from effectivity of QAR –
Mandatory for CPA practitioners with publicly listed and public-interest clients Optional for other CPA practitioners
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
THE QAR PROGRAM, cont’d
► Mandatory Coverage - After 3 years from effectivity of QAR –
Mandatory for all CPA practitioners ► Coverage
- QARO with BOA oversight
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
PREPARING FOR QAR- WHAT TO DO
► During “transition” – before effectivity of QAR
- QAR is here to stay – just a matter of time. - What do I have to do to get ready?
- Should be “Not much” - Compliance with quality control and auditing standards:
- Quality Control and Auditing Standards - PSQC 1
- PSA 220 - Continually Improve the quality control environment
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
PREPARING FOR QAR- WHAT TO DO, cont’d
► Follow the standards
► After effectivity - if selected for review - What to expect
Before the review During fieldwork After completion for the review
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
PREPARING FOR QAR- WHAT TO DO, cont’d ► After effectivity - if selected for review - To dos:
Before the review During the review
► In short - “Need to knows” to prepare: - Create an environment that follows quality control
and auditing standards. - Understand the QAR process - Know what the reviewer will do and focus on - Assemble the right information
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
EXECUTIVE SUMMARY
► Recognize what QAR is all about - QAR - the Why and How
► Recognize the importance of preparing for QAR - Preparing for QAR
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015
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QUICK RECIPE ON PREPARING QUALITY ASSURANCE REVIEW JULY 16, 2015