Statements of Position



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The proposed statement provides that a CPA firm shall have a system of quality control for its auditing and accounting and review services. The system would comprehend all applicable elements of Statement on Auditing Standards no. 4, Quality Control Considerations for a Firm of Independent Auditors. The system would include the establishment of quality control policies and procedures, the assignment of responsibilities to the extent required for effective implementation of those policies and procedures, communication of those policies and procedures to personnel to provide reasonable assurance that the policies and procedures are understood, and monitoring of the effectiveness of the system of quality control. The proposed statement provides that the system of quality control shall be appropriately comprehensive and suitably designed in relation to a CPA firm's organizational structure, its quality control policies, and the nature of its practice. The proposed statement provides, also, that the nature and extent of a firm's quality control policies and procedures depend on a number of factors, such as its size, the degree of operating autonomy allowed its people and its practice offices, the nature of its practice, its organization, and economic considerations, including appropriate cost/benefit considerations. The proposed statement, issued in final form, would be the first statement on quality control standards and, as such, would provide a framework for future pronouncements on quality control standards

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Accounting -- Quality control; Auditing -- Quality control


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed statement on quality control standards : system of quality control for a CPA firm ;System of quality control for a CPA firm; Exposure draft (American Institute of Certified Public Accountants), 1978, July 15



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