Based on the fact that statutory auditors and statutory audit firms are independent professionals who carry out their activity in accordance with the requirements of Law no. 04 / L-014 on Accounting, Financial Reporting and Auditing;
Assessing their role and contribution in safeguarding the public interest through fair implementation of International Standards on Auditing (ISAs) and compliance with the requirements arising from the IFAC Code of Ethics for Professional Auditors;
Based on the SCAAK Statute, section 3, item 3.4, which obliges SCAAK to implement IFAC SMO’s, based on the requirements of SMO 1 - IFAC Quality Assurance as well as based on requirements of KCFR AI No. 03/2014 on Oversight and Quality Control Procedures of the Licensed Professional Organizations’ work, as well as Audit Firms and Statutory Auditors work (paragraph I.1-pp 13-14) , SCAAK Council, starting in 2016, has approved the quality control regulation which makes mandatory the quality control of the work of statutory auditors, members of SCAAK..
To ensure the quality of audit services provided by SCAAK members, the quality assurance system was implemented. This system includes: quality control at the individual engagement level, quality control that is organized within the statutory auditing firm/ statutory auditor and quality control that is organized by SCAAK through the establishment and operation of the Quality Control Department, which is subject to supervision by SCAAK Quality Assurance Committee.
Quality assurance at the individual level of engagement is guaranteed by fair implementation, by legal auditors and partners in statutory audit firms, of all requirements outlined in International Auditing Standards (ISA) and IFAC Code of Ethics which are applicable in the context of the individual engagement.
Quality control within the statutory auditing firm/ statutory auditor is ensured by the establishment of internal review rules for the purpose of quality control engagements, which are based on IFAC ISQC 1.
Quality Control is organized by the SCAAK Quality Control Department in order to verify and provide sufficient assurance that statutory auditors and statutory firms are appropriately implementing the ISA’s, IFAC Code of Ethics and ISQC requirements and to report on audit findings to SCAAK Quality Assurance Committee.
Quality Control is mandatory for all SCAAK members who are licensed by KCFR to carry out statutory audits (statutory auditors and partners in statutory audit firms).
Members who refuse to undergo this control make a violation of the rules provided in the Code of Ethics for Auditors and are subject to disciplinary measures imposed by the Investigation and Disciplinary Committee.
Quality Control of statutory auditors is carried out at least once every 3 years.