Audit Observation | Audit quality control of auditing agencies in different countries

In different countries in the world, audit organs are generally established. Audit agencies must generally carry out audit business and form audit results. In the process of conducting audit business and forming audit results, how does audit authorities in different national audit institutions carry out audit quality control? This is undoubtedly a universal issue.

To answer this question, the relevant information of auditing agencies in different countries should be obtained. In view of the difficulty of collecting materials, the most provincial ways of events are used here, and the existing ready -made information -the "Audit Talking about the National Audit of the Ten Kingdoms" compiled by the International Cooperation Department of the my country Audit Department (the 1st edition of the Chinese Times Economic Press, September 2014, Referred to as "Ten Kingdoms Audit").

The Ten Kingdoms Audit is a unified questionnaire and their respective feedback results issued by the Auditor in 10 countries. One problem in the questionnaire is closely related to the theme of this article. This problem is (the original problem): 25. What are the core and important points of the highest audit authority of your country's highest audit organs? What are the difficulties and challenges of quality control? How to solve?

Regarding this issue, 10 national institutions set up, functional configuration, thinking perspective, professional discourse and grasping details are not consistent, but they all answered corresponding answers. Focusing on the theme of this article, the answers to this question in 10 countries, along with the relevant situation in my country, are based on the similarities and attention of the audit quality control practices in different countries and should pay attention to it.

Audit quality control in the audit business

The audit business process mentioned here refers to the results of audit results from the beginning of audit to issuing audit reports, which are usually two stages: audit implementation and audit report. In this process, each link must have inherent control, so that the quality of the audit meets the degree of measurement of relevant measurement standards. Otherwise, the quality of the audit process and results is difficult to guarantee. No matter which country and the practice, the quality control of the entire audit business process should be said to exist. However, there are still some differences in the answers given by different countries.

——An answers from the U.S. Audit Office pointed out that the quality assurance framework has been established and implemented. This framework contains 4 main parts: leadership, human capital, business performance, and supervision and policy review. Moreover, the U.S. Audit Agency believes that its quality assurance framework can reasonably ensure: work majors, independence (from form to content) and objective; sufficient evidence and appropriate; conclusions have sufficient evidence support; fairness and fair results; and wise suggestions. In order to implement this framework, the Audit Office provided the staff with the necessary guidance and tools to its staff at all stages of business management processes and training. " In short, the audit quality control is implemented during the audit business, and necessary guidance is given.

——In the answer of the Canadian Audit Office, in this regard, in one sentence: "The Audit Office can ensure the quality of its audit through compliance with the professional audit standards." Guidelines and implementation of audit quality control should also run through the entire audit business process.

——In the answer of the British Audit Office, "the British Audit Office has formulated a special policy and work system to supervise and ensure the quality of financial audit work. The relevant system can avoid the influence of audit independence. According to the requirements of the audit standards, the Audit Department will each year to the Audit Office to each year to the audit standards to each year. The audit unit explains how to maintain the quality of the audit and audit independence. "It can be seen that the British Audit Office implements audit quality control during the audit process, and pays more attention to the relationship between audit independence and audit quality. In addition, the British Audit Office "also has a special procedure for some sensitive matters, and a (director -level) audit manager who does not participate in the audit work independently reviews the work of the audit team."

——Frnically, the French Audit Court pointed out that "because we are a judiciary, the audit quality control is guaranteed by the Attorney General. All our reports have been reviewed by the Office of the Attorney General to ensure the correct implementation of all audit procedures." Based on this, from the audit implementation to the audit report, the French audit court itself should also have a certain degree of audit quality control; unlike the Non -judicial institution audit authority, it also emphasizes the role of the prosecutor and its office in the audit quality control. In other words, the quality review of the Attorney General and its office constitute an important part of the audit quality control of the French Audit Court.

—— The answer given by the German Federal Audit Institute is: "The Federal Audit Institute has established a quality control system that focuses on the quality of the results closely related to the audit procedure ... however, based on the high degree of independence of its members, it does not include it does not include the Monitoring elements. "" Quality control is part of the inseparable part of the audit procedures, so it cannot provide detailed information. "In other words, the German Federal Audit Office implements audit quality control. It is an organic component of the audit process. The audit quality control is implemented by the auditors themselves; There is no monitoring or separate supervision and inspection of the auditors and their work. Therefore, in addition to auditing implementation and auditing reports, it is not possible to provide more detailed information on auditing quality control.

——The Russian Federal Audit Institute asked questions about the longest answers, as many as 3,700 words. The content related to this specific issue is roughly: the Russian Federal Audit Institute formulates audit quality control measures; during the audit of auditing to the audit report, the full chain will implement audit quality control; Control or provide guidance for quality control measures for special control activities. " The characteristics of this approach are similar to the approach of the US Audit Office to guide the quality control of audit. The difference is to provide guidance by a person. ——The Australian Audit Agency pointed out in the answer that "Australian National Audit Agency has different quality control systems for audit and performance audit of financial statements. For financial report audits, whether it is single audit or practical management, we all follow the audit standards Requirements. In terms of performance audit, our senior executives will participate in the review and layout of all audit reports. " In summary, the Australian Audit Office also implements audit quality control on the entire process of business.

——The Japanese Audit Institute In response to the problems raised, from the two aspects of sending an inquiry letter to the audited unit and the review system in the hospital, it introduced what procedures for reviewing the audit audits adopted in detail. The inquiry letter mainly includes "an overview, related issues, preliminary evaluation opinions, and its basis for inappropriate accounting transactions in order to confirm the audit facts, obtain the opinions of the audited unit, clarify relevant questions", and check the relevant audit (audit quality) at the same time (audit quality) Essence The relevant review system mainly introduces the separation of the internal decision -making and enforcement functions of the audit institute to ensure independent decision -making and fair judgment. The biggest feature of these practices is to focus on the internal and external mutual constraint mechanisms, as well as the guarantee of program control on the quality of audit.

——The Indian Master Planning Audit Office asked all the answers given by questions: "In order to strengthen the quality of audit work in the process, products and results, the Indian Main Planning Audit Office introduced an audit quality management system (AQMF). According to Asia in Asia The relevant guidelines for Audit Organization (ASOSAI), the system determines the five parameters required to ensure high -quality audits, and 26 quality management elements (QME) in the parameters. In addition, the framework is roughly roughly roughly The important tool (KIES) that you need to use is the manual, guidelines, rules, and regulations for quality management. We have developed 5 action plans for the implementation system. "Because the answer is highly concentrated, we see a grandness of a grandness The system, but the specific content is unclear. If it is reasonably estimated, the audit quality control from the audit implementation to the entire audit report should be included in it.

—— The answer given by the South African Audit Office mainly introduces the inspection of the audit quality of the South African Audit Agency in 2000. It mentioned that "the quality control process owned by South African Auditing Director strengthened the participation of the auditors' independent supervision committee in the audit business audit." We can also extend it. , Audit quality control has been implemented.

Through the above limited information, the maximum commonality we can summarize is: During the audit business, audit institutions of various countries implement audit quality control. The special nature is: the audit organs of the United States and Russia also guide the quality control of audit audits, and the British designated person to conduct independent review; the French audit authority accepts the prosecutor and its office's supervision due to its attributes of the judicial organs. In the end, the control of audit quality is finally completed; German audit organs emphasize the independence of auditors, focus on the organic unity of audit quality control and audit business processes, and do not "monitor" auditors to implement audit quality control; Japanese audit authorities pay attention to internal duties in internal duties Division of labor restrictions and external obtaining feedback information to achieve audit quality control.

What is the audit quality control of our national audit organs? Simply summarize, throughout the audit business, my country's audit organs also implement the audit quality control system. Furthermore, it also has the characteristics or advantages of other countries: like the US and Russian audit agencies, the implementation of the audit quality control; similar to the German audit authority, adhere to the independent exercise of audit supervision in accordance with the law, pay attention to the audit business process and audit Organic unity of quality control; the signing of the relevant personnel of the audit unit through the audit and evidence collection session, and the audit report of the audit team for the audit unit, and the actual effect is equivalent to the Japanese audit unit; The audit, especially the special audit and trial, is different from the review of the British special person. It is also different from the nature of the French Audit Court after the prosecutor and its office review. These show that in terms of audit quality control, my country's audit organs are amplifiers, and they are not inferior to other national audit organs, and have formed a more complete and complete mechanism and approach.

Audit quality inspection outside the audit business

The effectiveness of auditing quality control in the audit business often needs to be re -supervised on the quality control of the audit business. This re -supervision is also part of the general audit quality control. In order to be different, the re -supervision of audit quality control, we call it audit quality inspection outside the audit business process. How did the audit quality inspection of audit organs in different countries carried out?

——In the United States, "In order to ensure that the audit of the Audit Office follows the requirements of the quality assurance framework, the Audit Department conducts a checks on its performance audit, financial audit, certification business, and routine non -audit work each year. Quality officials appointed their staff to lead the work team. "" In addition to annual inspections, the Audit Office will receive an external interbank inspection every 3 years. The international team composed of representatives of the highest audit authorities in other countries with similar mission to the Audit Office will be against the Audit Office. Performance audit work conducts interbank inspections, and the team can be composed of members from different audit institutions. " Briefly speaking, in terms of the quality of different types of business audit, the US Audit Office is inspected once a year; on the quality of performance audit, the international team will conduct interbank inspections once in three years.

——In Britain, "Each year, the Audit Office also conducts internal quality control inspections after financial audit certification"; "every year, the Audit Department also invites the audit quality inspection department of the British Vocational Supervision Commission to conduct inspections on the quality of financial verification audit work." That is, the British Audit Office conducts two types of inspections of the audit quality once a year: first, the internal inspection of the Audit Office, and the other is an inspection of the Audit Office but it belongs to the British inspection.

——The situation of the French Audit Court has been explained as above. It can also be understood as the prosecutor and its office to conduct external audit quality inspections at any time.

——In Russia, "In order to objectively evaluate the quality of the audit activities of the Federal Audit Institute, the information obtained through internal quality control and external sources should be comprehensively considered. Such information is submitted by the user of the audit survey results" "Federal Audit Institute audit The external source of the quality information of the activity can be the federal committee and the national Duma and its committees. The relevant administrative organs, the state power organs and public organizations, the autonomous agencies, the public media and society will refer to these Opinion of the organization. This is the use of translation materials to look more strenuous. Can it be such a concise expression: it will consider the opinions of external agencies and units, and evaluate the audit quality of the Russian Audit Institute.

—— Australian Audit Agency replied, "We will also conduct independent quality assurance review of some audit projects, and focus on checking aspects that need to be improved in the audit practice. If any problems are found, we will ask the auditors to pay attention to learn lessons from it." Essence The review here is unlike the audit review during the audit process after the audit process is over. It can be understood that: within the audit department, the quality of the audit items is inspected afterwards.

——In South Africa, two cross -examination system for the audit quality of the Audit Office. One committee is the Quality Control Committee of South African Auditor, and the other is the independent supervision committee of the auditors. The South African Auditer's Quality Control Committee was chaired by the Auditor, and the other three members were deputy auditors and two independent external audit experts. The parliamentary supervisory agency was invited to participate in the meeting of all quality control guarantee committees. The auditors' Independent Supervision Committee re -review the South African Auditer Quality Examiner on the basis of sampling. The review of the review shall anonymous submission of the Quality Control of the Quality Control Assurance Committee by the Auditer's Independent Supervision Committee to ensure objective assessment. In other words, the quality of the audit must be interviewed by two committees, and finally submitted to a meeting participated by the parliamentary supervisory agency.

The above listed answers in 6 countries. In Canada, Germany, Japan, and India's audit agencies, the answers to the question were not provided for auditing quality inspections on the audit business process.

The commonality of the six national audit organs is inspecting the quality of the audit after the audit business or after the audit process is over. There are 5 countries with unique practices: the U.S. Audit Office undergone dual quality inspections, that is, its own inspection and other countries' audit organs interbank inspections, especially foreign audit institutions for interbank inspections, other countries do not have this approach; It is also inspected by the Vocational Supervision Committee of the country; the French Audit Court was inspected by the prosecutor and its office at any time; the Russian Federal Audit Institute of Audit Quality Inspection must also consider the supervision information of external agencies and units; Quality accepts cross -examination of two committees.

In connection with the situation in my country, the audit organs in China have implemented a full -scale audit quality inspection. In addition to the inspection of the interbank inspection of foreign audit agencies, the audit quality inspection of several other countries is basically reflected in different degrees of audit quality inspection in my country, and there are practices that other countries do not have. Specifically: First, the audit agencies at all levels at all levels submit the audit report and audit decision to the audit authorities at the higher level, and submit the audit results report, etc. In fact, the audit quality supervision and inspection of the audit authority of the previous level is accepted. This is not done by audit organs in many other countries. Second, there are not only audit inspections and law enforcement inspections from the audit institutions at this level. This is also unable to carry out audit organs of many other countries. Third, in particular, according to the newly revised audit law, "audit organs and auditors should accept supervision in accordance with the law." That is, in terms of audit quality, according to law, various supervision, including the supervision of intra -party supervision, the supervision of the people's congress, democratic supervision, judicial supervision, social supervision, and public opinion supervision.

Audit quality control and inspection based on the standards based on

The audit quality control is good or the audit quality inspection must be based on certain standards. What are the standards based on? Let's take a look at the situation of different countries. ——In the United States, "the Audit Office provides Congress, administrative department and the American people on providing the government's performance and ensuring the accurate information, fair analysis and reliable suggestions of the government to serve the public." It is seen that the primary criterion based on the audit and quality inspection of the Audit Agency is the purpose of auditing. The degree of realization of audit purposes is an important aspect of measuring the quality of audit.

——The Canadian Audit Agency pointed out that "the mission of the Audit Office is to provide Parliament with independent and reliable sources of information and guarantee, and our work quality is crucial. The Audit Department ensures the quality of its audit work by compliance with professional audit standards." This answer is similar to the U.S. Audit Agency's highlights of audit. Firstly, it emphasizes the mission of the Audit Office, and can determine the quality of the audit depending on the mission of the audit. However, it is more intuitive and more operable than the US Audit Agency's answer is the "compliance with professional audit standards", that is, the direct basis for the quality control and inspection of professional audit standards.

——In British Audit Office, when introducing their audit quality control of the audit business process, it has been mentioned that special policies and work systems are formulated, and the relevant situation is explained to the audit unit in accordance with the audit standards. In addition, further clarification, "the Audit Office complies not only to professional professional standards, but also abide by the working principles of the public sector, and has a unique status. On this basis, the Audit Office also puts forward the core value content -responsibility, integrity, objective, and fair. The Audit Office requires all staff to fill in professional ethics reports each year and stipulate that they have complied with the requirements. " All these are one step further than Canada. Not only must we measure and check the quality of the audit in accordance with the principles of public sector work and auditing professional ethics in accordance with the principles of public sector.

——In the French Audit Court answered the question, "The main difficulty we face is to coordinate the various procedures that we have implemented for centuries and the highest audit organs. In most cases, we have already been in practice. These standards are applied without special confirmation whether it is applied in the way of reference. " In other words, the quality control and inspection of French audit quality is largely based on both the long -term implementation of the international standards.

—— The answer given by the German Federal Audit Institute has been displayed in the first part of this article. The inference that can be obtained from it is that the basis for auditing quality control and inspection should be the audit quality control system, or an audit procedure integrated with other aspects. If you borrow similar laws, it is also based on the audit standards as the basis for auditing quality control and inspection.

——The Russian Federal Audit Institute first made it clear when answering the question, "During the implementation of the Federal Law" Russian Federal Audit Law "and the" Federal Audit Institute Regulations ", considering the" Supreme Audit Institutions International Guidelines No. 300 "," Europe "," Europe " "Audit Organization Audit Quality Guidance Guidance" and the experience of the highest audit authorities abroad in the control activity quality management organization have determined the current audit quality control measures. " Based on this, whether it can understand this, the Russian Federal Audit Institute also uses audit standards or good audit practice (experience) as a basis for auditing quality control and quality inspection.

——The Australian Audit Office's answer is relatively short. From the content that has been cited, especially the quality control and inspection of the audit of financial statements, it is also based on the audit standards.

——The Japanese Audit Institute asked the answer to the question. The previous description was described, mainly to introduce the inquiry letter and review system to the audit unit. In terms of audit quality control and inspection, we can also think that the audit standards are based.

——The brief answer of the Indian Program Audit Office has been quoted in front of the text. Like the Japanese Audit Institute, the control and inspection of its audit quality are based on the audit standards.

——In the answer provided by the South African Audit Office, one of the benefits of the inspection of the independent supervision committee of the auditors is "ensuring that our quality review process is the same as industry standards." As a result, its audit quality control and inspection, as the most basic industry standards, are also audit standards.

The standards provided by the audit quality control and inspection provided by the above 10 national audit organs seem to be different, and the substantial display is different levels. Generally speaking, the standards based on the quality control and inspection of the audit should be based on the materials provided by the answers of various countries to form such standards: First, the audit business standards. It is mainly the national audit standards, as well as good audit practitioners (work experience) that connect or consistent with international audit standards. The audit quality control and inspection of various countries cannot be separated from this minimum standard. Second, the work principle that the audit organs should abide by the public sector should abide by. Britain is clearly proposed. Although other countries have not been introduced, they cannot be considered in fact. The third is audit professional ethics. This is the same as before. The quality of audit is the behavior and results of auditors. The audit quality control and inspection cannot be separated from the control and inspection of auditors' behavior, and must be based on auditing professional ethics. Fourth, the audit mission, audit purpose or audit goal. It is difficult to imagine that the audit mission, purpose or goal has not achieved, and the audit quality is high, or the audit quality inspection also believes that there is no problem. The standards at these levels are progressive relationships in turn. The most basic level is the audit business criteria, and the audit mission, purpose, or goal should be a higher level of measurement basis. What are the standards based on the quality control and inspection of audit quality of my country's audit organs? Basically, it is a comprehensive standard superimposed by the above levels. Only in this way can we comprehensively, objectively, and accurately control and check the quality of the audit.

Implement a comprehensive and multi -level audit quality control

The quality control and inspection of audit quality should not only be based on multi -level and comprehensive standards, but also should be controlled in all -round and multi -level. In fact, the practice of audit organs in some countries is the same.

—— The U.S. Audit Office pointed out that the implementation of the quality assurance framework in the process of supervision and audit, "at all stages of business management processes and training, the Audit Office provides necessary guidance and tools to its staff." That is, the relevant audit quality control needs to run through all stages of the audit business management process and training.

——In Britain, the Audit Department specially emphasizes the quality of the audit and is guaranteed through various channels. One is to continue vocational education ... Second, special skills assistance ... "It can be seen that the British Audit Agency implements a comprehensive aspect of comprehensive , Stereo audit quality control.

—— Australian Audit Agency mentioned when answering questions, "When we arrange learning and developing projects, we will also consider the results of quality assurance review." That is, the results of audit quality control and inspection will be used for continuing education and training of auditors.

Unfortunately, only the relevant situation of the audit organs of three countries is listed here. In the answers of the other 7 countries, it is not easy to find related content. I think this is related to the problem. It should be said that what is considered now is clearly pointing out of the problem. However, I believe that quality control is a systematic project, which does not provide relevant information, and does not mean that these national audit organs have not implemented a comprehensive and multi -level audit quality control.

Regarding the practical situation of the three national audit organs and the actual situation of the audit quality control of my country's audit organs, the conclusion that we can draw is to implement a comprehensive and multi -level audit quality control, except for auditing quality control and auditing business during the audit business process In addition to the audit quality inspection after the process, at least two are very important. The first is the continuing education and business training of auditors. Through education and training, learn knowledge and skills, and share experience lessons to enhance the level of political theory, professional ethics, and professional competence capabilities. The second is to provide assistance to special skills required for audit. Those who have relevant professional knowledge and skills needed to appoint audit matters to make up for the shortcomings of the professional ability of the auditors and improve the comprehensive audit ability. With high -quality professional audit teams, and continuously improving the ability of comprehensive audit competence is the basis and premise of the entire audit quality control. Only in this way can we ensure the quality of audit and the high -quality development of the entire audit.

Source: "Audit Observation" magazine 2022 Issue 2

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