Exposure Drafts, Comment Letters, and Statements of Position

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Description

The Quality Review Executive Committee (QREC) is considering the issuance of these proposed amendments to the Standards for Performing and Reporting on Quality Reviews to enhance on-site and off-site quality reviews and eliminate some of the differences between the two types of reviews. The proposed amendments would bring about significant changes in the performance and reporting on quality reviews. The proposed amendments: 1. Allow associations of CPA firms to arrange and carry out off-site quality reviews in the same manner as they arrange and carry out on-site quality reviews. 2. Require all individuals performing on-site and off-site quality reviews (a) to be currently active in the practice of public accounting (b) to have five years of recent experience in the accounting and/or auditing function of a firm enrolled in one of the AICPA practice-monitoring programs, and (c) to have attended an applicable reviewer's training course. 3. Require letters of comments to be issued in conjunction with off-site quality review reports so reviewers can more easily report on deficiencies detected during the review. These letters of comments also provide reviewers the opportunity to make useful recommendations for correcting the deficiencies detected. 4. Allow the AICPA Quality Review Executive Committee to report certain matters to the AICPA Professional Ethics Division for investigation and disposition. 5. Define "substandard engagements" for purposes of the quality review program. These proposed amendments would revise and add to the existing Standards. For purposes of this exposure draft, the language to be revised is shown with a line drawn through it and the new language is presented in boldface italics. The proposed amendments are expected to become effective with quality reviews conducted on or after April 1, 1994.

Publication Date

1993

Relational Format

Book

Keywords

Auditors' reports -- Standards -- United States

Disciplines

Accounting | Taxation

Comments

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

Proposed amendments to standards for performing and reporting on quality reviews : performing and reporting on off-site quality reviews;Performing and reporting on off-site quality reviews; Exposure draft (American Institute of Certified Public Accountants), 1993, Jun. 15

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