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    NFRA issues Audit Quality Inspection Guidelines for Audit Firms undertaking audits of Public Interest Entities

    Published Tue, 29 Nov 2022 | Updated Tue, 29 Nov 2022

    • The audit profession's quality has been significantly improved with the publication of NFRA's audit quality inspection guidelines.

    • Many stakeholders have previously proposed that NFRA conduct onsite audit firm inspections to enable inspection teams get familiar with the systems and procedures used by audit companies

    • The goal of NFRA inspections is to find areas and chances for the audit firm's quality control system to be improved.

    • The goal of NFRA inspections is to find areas and chances for the audit firm's quality control system to be improved. Inspections will include a firm-wide assessment of audit quality (SQC 1) and test-and-check evaluations of individual files to assess the degree of adherence to applicable auditing standards, quality control procedures, and policies.

    • Audit quality inspections will provide the audit firms a chance to receive comments and make necessary course corrections while also creating a broader awareness among all parties of the principles and practises underlying audit quality management. The objective of the inspections is to fundamentally enhance the overall financial reporting framework.