Audit quality assurance is the function of ensuring that auditors and audit firms perform to high professional and ethical standards. It involves periodic review of auditors and audit firms and is another name for audit quality monitoring.
Rule 103 of Nepal Chartered Accountants Rule 2061 (along with amendments) has provisioned for the structure, governance and operation of quality assurance activities.
Within the review of firms that is at the heart of quality assurance, the scope of review aims to cover:
- Whether or not the auditors and audit firms have complied with Nepal Standards on Quality Control and provisions on quality control have been constantly applied.
- Whether or not the auditors and audit firms have complied with applicable Nepal standards on Auditing and Code of Ethic in engagement performances.
- Whether or not the auditors and audit firms have complied with relevant laws and regulation applicable to the engagement performances.