SUMMARY

Nature of service Audit Review Agreed-upon

Procedures

Compilation

Level of Assurance

Provided

High, but not

absolute assurance

Moderate

assurance

No assurance No assurance

Report provided Positive assurance

on assertion(s)

(Audit Report)

Negative

assurance on

assertion(s)

(Review Report)

Factual findings of

procedures

Identification of

information

compiled

(Compilation

Report)

CPA REVIEW SCHOOL OF THE PHILIPPINES

4Manila

AUDITING THEORY CPA REVIEW

● PSQC1 QUALITY CONTROL FOR FIRMS THAT PERFORM AUDITS AND REVIEWS OF
HISTORICAL FINANCIAL INFORMATION, AND OTHER ASSURANCE AND RELATED

SERVICES

● PSA 220 (REVISED)

QUALITY CONTROL FOR AUDITS OF HISTORICAL FINANCIAL INFORMATION

● PSA 210 [AMENDED BY PSA 700(REVISED)]

TERMS OF AUDIT ENGAGEMENTS

PSQC 1

1. The firm should establish a System of Quality Control to provide it with reasonable assurance

that:

a. The firm and its personnel comply with professional standards and regulatory and

legal requirements; and

b. The reports issued by the firm or engagement partners are appropriate in the

circumstances.

2. Elements of a System of Quality Control

a. Leadership responsibility for quality within the firm

b. Ethical requirements

c. Acceptance and continuance of client relationships and specific engagements.

d. Human resources

e. Engagement performance

f. Monitoring