Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the Concept Release, Potential Approach to Revisions to PCAOB Quality Control Standards

Abstract

On December 17, 2019, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its Concept Release, Potential Approach to Revisions to PCAOB Quality Control Standards . The Board is considering revising its Quality Controls (QC) standards to focus firms on improving their QC systems. To reduce the compliance burden on firms, the Board is considering aligning its QC standards with those of the proposed International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements (proposed ISQM 1). The comment period ended on March 16, 2020. This commentary summarizes the participating committee members’ views on selected questions on three topics presented in the Concept Release: Resources (questions 31, 32, 34, 36, 37), The Monitoring and Remediation Process (questions 45, 46, 47), and Roles and Responsibilities of Individuals (question 52).

The Extent of the Application of Internal Auditing Standards in Iraqi Commercial Banks

“…This is because the internal audit function has witnessed many developments in its nature and objectives, and these developments have been accompanied by another development in its concept, and thus the definition of internal audit has expanded from period to period to reflect its evolving concept (Cevahir & Çalıyurt, 2021). (Brown, 2020) believes that the audit committee of the American Institute of Banking Management has defined internal audit as "an administrative function that independently assesses the adequacy, effectiveness and accuracy of the control systems in place within the facility and the quality of the ongoing operations".…”

“…(Rattray, 2020) believes that the internal auditing standards are "a binding performance model that specifies the general rules to be followed when carrying out the audit process or professional custom". The AICPA has defined auditing standards as "general guidelines that guide auditors to carry out their professional responsibilities in auditing financial statements" (Brown, 2020;Abdul Rahman et al, 2021). (Harahap, 2018) confirms that the generally accepted standards of internal auditing represent "a basis for the work of internal auditors, specifying their technical responsibilities and following up on their professional performance".…”