Chapter 2

THE
PROFESSIONAL
STANDARDS
OBJECTIVES
1)Understand the role of AASC
2)Know what are the Philippine
Standards on Auditing
3)Know and explain the significance
of the system of quality control
Auditing and Assurance Council
(AASC)
- To promulgate auditing
standards, practices and procedures
which shall become generally
accepted.
System of QUALITY
CONTROL
- Policies and procedures
adopted by CPAs to provide
reasonable assurance of
conforming to professional
standards.
Philippine Standards on Quality
Control (PSQC) 1
◦- Firm has the obligation to establish a system
of QC designed to provide reasonable
assurance that the firm and its personnel
comply with professional standards and
regulatory and legal requirements

◦- Reports issued by the firm are appropriate

Elements of a System of QC (PSA
220)
Leadership responsibilities
Ethical Requirements
Independence
Acceptance and Continuance of client relationship
Human resources and assignment
Engagement performance
Monitoring