Published 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.