What are the Responsibilities of Auditing Firms in Quality Control of Auditing Services?

What responsibilities do audit firms have in controlling the quality of audit services? (illustrative image)

To be specific, Circular 157/2014/TT-BTC stipulates that the subjects subject to quality control of audit services include audit firms and practicing auditors. The responsibilities of audit firms in controlling the quality of audit services are as follows:

- Develop and implement policies and procedures for controlling the quality of audit services to ensure that all audit service contracts are conducted in accordance with professional standards, laws, and relevant regulations;- Annually, audit firms, based on the direct inspection process of audit service quality, professional standards, laws, and relevant regulations, organize self-inspection of audit service quality, with plans and corrective measures for deficiencies and errors identified during inspections. Upon completion of the self-inspection work, audit firms must prepare a Report on the Results of Self-Inspection of Audit Service Quality according to the template specified in Appendix No. 02 issued with this Circular;- No later than May 31 each year, audit firms must send the Report on the Results of Self-Inspection of Audit Service Quality to the Ministry of Finance. In cases where audit firms are approved to audit units with public interests in the securities sector, the Report on the Results of Self-Inspection of Audit Service Quality must be sent simultaneously to the State Securities Commission;- In addition to sending the Report on the Results of Self-Inspection of Audit Service Quality as mentioned above, audit firms have the responsibility to report when required by the Ministry of Finance or the State Securities Commission (hereinafter collectively referred to as the inspection agency) on independent audit activities.

Details can be found in Circular 157/2014/TT-BTC which takes effect from October 23, 2014.

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