SELF-ASSESSMENT OF INTERNAL QUALITY CONTROL MONITORING PROGRAM

SELF-ASSESSMENT OF INTERNAL QUALITY CONTROL MONITORING PROGRAM

This form is used to review the firm’s internal quality control (QC) monitoring program over its audit practice to ensure it has been performed in accordance with ISQC 1.

FIRM			REVIEW REF.
Period of review		Length of review cycle (i.e. period over which engagements for all engagement partners are reviewed)
Offices covered by review		Percentage ofall engagement partners covered by the firm’s review
Staffing of the firm’s internal QC monitoring program
	Name		Title
Individual responsible for program
Others:
Engagements reviewed as part of the firm’s internal QC monitoring program
Numberof engagements reviewed		Percentage of all engagements reviewed

ISQC 1 Ref	ISQC 1 Requirements	Firm’s Assessment	Attachment (whereapplicable)
	Monitoring objective
48 A64 A65	Each firm shall establish a monitoring process designed to provide it with reasonable assurance that the policiesand procedures relating to the system of quality control are relevant, adequate and operating effectively. Purpose of monitoring process: ·Adherence to professional standards and legal and regulatory requirements ·Whether the quality control system is appropriately designed and effectively implemented ·Whether the quality controlpolicies and procedures have been appropriately applied so that reports issued by the firm are appropriate	Describe the firm’s monitoring process:
48 A66 A67	Include an ongoing consideration and evaluation of the firm’s systemof quality control including, on a cyclical basis, inspection of at leastone completed engagement for each engagement partner.	Consideration and evaluation of the system of quality control, describe how the firm monitors the following: ·New developments in professional standards and legal and regulatory requirements and how they are reflected in the firm’s policies and procedures Describe:
ISQC 1 Ref	ISQC 1 Requirements	Firm’s Assessment	Attachment (whereapplicable)
		·Written confirmation of compliance with procedures on independence Describe: ·Continuing professional development including training Describe: ·Decisions related to client acceptance and continuance Describe: ·Determination of corrective actions and improvements to the system including feedback into the firm’s policies regarding education and training Describe: ·Communication to appropriate firm personnel of weaknesses in the system, in the level of understanding of the system or compliance with it Describe: ·Follow up by appropriate firm personnel so that modifications are made promptly Describe:
ISQC 1 Ref	ISQC 1 Requirements	Firm’s Assessment	Attachment (whereapplicable)
48	Require responsibility for the monitoring process to be assigned to a partner or partners or other persons with sufficient and appropriate experience and authority in the firm to assume that responsibility.	Describe the firm’s assignment process:
48 A68	Require thatthose performing the engagement or the engagement quality control review are not involved in inspecting the engagements.	In smaller firms monitoring may need to be performed by those responsible for the design and implementation of the quality control system or those who perform the engagement quality control review. Such a firm may choose to use an external person or another firm to carry out monitoring. Describe assignment process for engagement quality control review:
	Evaluating, communicating and remedying identified deficiencies
49	Each firmshould evaluate theeffect of deficiencies noted as a result of the monitoring process and should determine whether they are either: (a)Instances that do not necessarily indicate that the systemof quality control is insufficient to provide reasonable assurance that the firm complies with professional standards and regulatory and legal requirements, and that the reports issued are appropriate in the circumstances; or (b)Systemic, repetitive or other significant deficiencies that require prompt corrective action.	Describe how the firm handles its deficiencies noted as a result of the monitoring process:
50	Deficiencies noted as partof the monitoring          process     and recommendations for appropriate remedial action should be communicated         to                          relevant engagement partners and other appropriate personnel.	Describe how the firm communicates recommendations for appropriate remedial action on deficiencies noted:
ISQC 1 Ref	ISQC 1 Requirements	Firm’s Assessment	Attachment (whereapplicable)
	Generally, when reporting to individuals other than the engagement partner, the specific engagement need not be identified.
51	The evaluation of each typeof deficiency should result in recommendations for one or more of	Describe how the firm takes remedial action on deficiencies noted:
	thefollowing:
	(a)      Taking appropriate remedial
	action in relation to an individual
	engagement or member of personnel;
	(b)      The communication of the
	findings to those responsible   for
	training         and                     professional
	development;
	(c)       Changes to the quality control
	policies and procedures; and
	(d)      Disciplinary    action          against
	thosewho fail tocomply with   the
	policies andprocedures of the firm,
	especially     those     who                   do         so
	repeatedly.
52	Where the results of the monitoring procedures indicate that a report may be inappropriate or that procedures were omitted during the performance of the engagement, the firm should determine what further action is appropriate to comply with relevant professional standards and regulatory and legal requirements. It should also consider obtaining legal advice.	Describe how the firm takes actions on inappropriate report or omitted procedures during performance of the engagement:
53	At least annually, the firm shouldcommunicate the results of the monitoring of its quality control system to engagement partners and other appropriate individuals within the firm, including thefirm’s chief executive officer or, if appropriate, its managingboard of partners. Such communication should enable the firm and these individuals to take prompt and appropriate actionwhere necessary in accordance with their defined roles and responsibilities. Information communicated should include the following:	Describe how the firm communicates the result of the monitoring of its qualitycontrol system.
ISQC 1 Ref	ISQC 1 Requirements	Firm’s Assessment	Attachment (whereapplicable)
	(a)A description of the monitoring procedures performed. (b)The conclusions drawn from the monitoring procedures. (c)Where relevant, a description of systemic, repetitive or other significant deficiencies and of the actions taken to resolve or amend those deficiencies.
58 A73 A74	Retention         of                         monitoring documentation Monitoring documentation should be held for a time period sufficient to satisfy local jurisdiction requirements. The firm should always retainthe documentation relating to one complete monitoring cycle (usually a year) alongside any monitoring which may be in progress in the currentyear. Form and content of documentation evidencing each element of the QC system is a matter of judgment and depends on factors such as: ·size of firm and number of offices ·nature and complexity of the firm’s practice and organization Appropriate documentation for monitoring includes for example: ·Monitoring procedures, including the procedure for selecting completed engagements ·A record of evaluation of adherence to professional standards, whether the QC system has been appropriately designed and implemented and whether the QC procedures have been appropriately applied so that reports are appropriate ·Identification of deficiencies noted,an evaluation of their effect and the basis for determining whether and what further action is necessary	Describe the firm’s retention of monitoring documentation: