Question

Discuss the relationship between quality control and generally accepted auditing standards.

Answer 1

Generally Accepted Auditing Standards are sets of standard against which the quality of audits are performed and may be judged. Several organisations have developed such sets of principle which vary by territory. In US the standards are regulated by Auditing standard board.

Quality control is a internal process of audit. A firm of independent auditors has a responsibility to adopt a system of quality control in conducting an audit practice. Thus, a firm should establish quality control policies and procedures to provide it with reasonable assurance that its personnel comply with generally accepted auditing standards in its audit engagements. The nature and extent of a firm’s quality control policies and procedures depend on factors such as its size, the degree of operating autonomy allowed its personnel and its practice offices, the nature of its practice, its organization, and appropriate cost-benefit considerations.

Generally accepted auditing standards relate to the conduct of individual audit engagement and quality controls standards relate to firm's audit practice as a whole. Thus GAAS and quality control are related to each others.