CA/DPSC&E/Circular-3/2008
ALL PRACTICING MEMBERS
As you are aware, the Institute has recently adopted the ISQC 1 “Quality Control for Firms that perform Audits and Reviews of Historical Financial Information and Other Assurance and Related Services Engagements”. Communication in this regard was made to all practicing members vide a circular dated February 6, 2008. ISQC 1 will become mandatory for all audit firms conducting audit of listed and public interest entities from accounting periods beginning on or after July 1, 2009 and till that time firms would be encouraged to start compliance with this standard.
ISQC 1 is directed at how a firm organizes its practice rather than how the firm conducts individual audits. Compliance with ISQC 1 will enhance the overall quality controls and procedures implemented by the firms for performing audits and other assurance services.
In order to initiate the above compliance, ICAP has developed a questionnaire which is being enclosed. This questionnaire is a tool for firms to assist them in assessing and demonstrating their compliance with ISQC 1. Members are encouraged to fill this questionnaire on self assessment basis. In this respect, the Institute would also conduct a series of workshops for providing guidance to the members to complete this questionnaire.
ICAP has also taken the initiative to introduce a new concept of “ISQC 1 Mentoring Program” and has engaged a senior consultant for facilitating the firms in meeting their compliance with ISQC 1. Additionally, ICAP is also preparing ISQC 1 Manual which will provide firms with various standardized documents to comply with the requirements of this standard.
All practicing members are requested to fully participate in the above exercise which will ultimately help in the strengthening and capacity building of their firms. Members are requested to complete the questionnaire and send the same by email to asif.iqbal@icap.org.pk by June 30, 2008. The questionnaire can be downloaded in MS-Word Format
Should you require any clarification or assistance in completing the questionnaire, please do not hesitate to contact the undersigned or Mr. Zulfiqar Ali Shaikh at zash@icap.org.pk
Thanking you.
Yours truly,
Director
Professional Standards Compliance & Evaluation
