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PSA 220 Summary
Palmes, Emie Rose R. February 13, 2015
BSA III-0I Prof. William Baltazar

Philippine Standard on Auditing 220 (Redrafted)
QUALITY CONTROL FOR AN AUDIT OF FINANCIAL STATEMENTS

A financial statement that is reasonably assured must qualify in the quality control of an audit. An auditor also considers the quality control of the financial statements intended for the users. PSA 220 talks about with the specific responsibilities of the auditor regarding quality control procedures for an audit of financial statements. It also addresses, where applicable, the responsibilities of the engagement quality control reviewer. This PSA is to be read in conjunction with relevant ethical requirements.

Quality control systems, policies and procedures are the responsibility of the audit firm. The firm must maintain the quality control of the audit because the result of audit will reflect on the image of the company. If the quality of control is low, it means that the company has a difficulty in the operation of business and the auditor must gather more evidence on how and why the company’s performance is declining. The auditor has major role in determining what is the appropriate solution for the company to improve more. The audit engagement will provide the firm with relevant information to enable the functioning of that part of the firm’s system of quality control relating to independence.

Auditors can tell if the company has quality control in audit of financial statements through to the criteria sets by PSA 220, the audit complies with professional standards and regulatory and legal requirements; and the auditor’s report issued is appropriate in the circumstances. According to PSA 220, the company must have engagement quality control review which is the process designed to provide an objective evaluation, on or before the date of the auditor’s report, of the significant judgments the engagement team made and the conclusions it reached in formulating
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