(Ref: Para. A1
–
A1-1)
15.
The requirements are designed to enable the firm to achieve the objective stated in
this ISQC (UK). The proper application of the requirements is therefore expected to
provide a sufficient basis for the achievement of the objective. However, because
circumstances vary widely and all such circumstances cannot be anticipated, the firm
shall consider whether there are particular matters or circumstances that require the
firm to establish policies and procedures in addition to those required by this ISQC
(UK) to meet the stated objective.
15D-1. The firm shall:
(a)
Take into consideration the scale and complexity of the firm’s activities when
complying with the requirements set out in paragraphs
16D-1, 16D-2, 20D-1,
21D-1, 29D-1, 29D-2, 32D-1 and 48D-1 of this ISQC (UK); and
(b)
Be able to demonstrate to the competent authority
3d
that the firm’s policies and
procedures designed to achieve compliance with the applicable requirements of
this ISQC (UK) are appropriate given the scale and complexity of the firm’s
activities.
Elements of a System of Quality Control
16.
The firm shall establish and maintain a system of quality control that includes policies
and procedures that address each of the following elements:
(a)
Leadership responsibilities for quality within the firm.
(b)
Relevant ethical requirements.
(c)
Acceptance and continuance of client relationships and specific engagements.
(d)
Human resources.
(e)
Engagement performance.
(f)
Monitoring.
16D-1. The firm shall establish appropriate policies and procedures to ensure that no partner,
director, member or shareholder of the firm, or partner, director, member or
shareholder any affiliate of the
firm, intervenes in the carrying out of an engagement
in any way which jeopardizes the firm’s independence and objectivity in carrying out
such work.
16D-2. The firm shall have:
(a)
Sound administrative and accounting procedures;
(b)
Internal quality control mechanisms which are designed to secure compliance
with decisions and procedures at all levels of the firm’s working structure;
(c)
Effective procedures for risk assessment; and
(d)
Effective control and safeguard arrangements for information processing
systems.
3d
In the UK, the competent authority designated by law is the Financial Reporting Council or the
Recognised Supervisory Body to whom the FRC has delegated regulatory tasks, as applicable.
ISQC (UK) 1 – Revised June 2016
9
17.
The firm shall document its policies and procedures and communicate them to the
firm’s personnel.
(Ref: Para. A2
–
A3)
Leadership Responsibilities for Quality within the Firm
18.
The firm shall establish policies and procedures designed to promote an internal
culture recognizing that quality is essential in performing engagements. Such policies
and procedures shall require the firm’s chief executive officer (or equivalent) or, if
appropriate, the firm’s managing board of partners (or equivalent) to assume ultimate
responsibility for the firm’s system of quality control.
