Bangladesh
Standard on Audit(BSA-220)
What is the Bangladesh standard on Audit(BSA-220) ? Describes in details:
BSA-220: Quality Control for an Audit of Financial Statements is a standard issued by the Institute of Chartered Accountants of Bangladesh (ICAB) that provides guidelines to ensure that audits are conducted with high-quality standards. It outlines the auditor's responsibility to maintain quality control over the audit process.
In short, BSA-220 addresses the following key points:
1.Responsibility for Quality Control:
The audit firm is responsible for establishing and maintaining a system of quality control that is designed to provide reasonable assurance that the audit is conducted in accordance with professional standards and regulatory requirements.
2.Key Elements of Quality Control:
The standard outlines key components of the quality control system, including:
3.Leadership Responsibility:
The firm’s leadership must set an appropriate tone regarding the importance of quality and ensure that quality control policies are effectively implemented.
4.Ethical Requirements:
The firm must ensure compliance with ethical standards, including independence, integrity, and objectivity.
5.Acceptance and Continuance of Client Relationships:
The firm must evaluate whether to accept or continue client relationships based on factors such as the integrity of the client and the firm's ability to perform the audit effectively.
6.Human Resources:
The firm must ensure that audit personnel possess the necessary skills, experience, and qualifications for the audit.
7.Engagement Performance:
The firm must implement procedures to ensure that audits are performed in line with professional standards and meet the firm's quality expectations.
8.Monitoring:
The firm should have a process to monitor the quality control system and assess whether it is operating effectively.
9.Audit Engagement Quality:
For each individual audit engagement, the auditor is responsible for ensuring that the audit is performed in accordance with the firm's quality control policies and procedures.
10.Documentation:
The auditor must document the quality control procedures performed and the judgments made during the audit process.
In essence, BSA-220 emphasizes the importance of maintaining high-quality standards throughout the audit process to ensure that audits are conducted in a reliable, ethical, and professional manner.