Audit Practice Review & Support Program
The Institute of Chartered Accountants of Pakistan (the Institute) is a member of the International Federation of Accountants (IFAC). IFAC has issued Statements of Membership Obligations (SMOs) which are to be mandatorily complied by its member bodies. IFAC SMO-1 (Quality Assurance) requires that a mandatory quality assurance review system should be in place for firms performing audits of financial statements. Accordingly, the Council of the Institute is introducing ‘Audit Practice Review & Support Program’ (APRS Program) for conducting firm and engagement review of non-Quality Control Review (QCR) rated firms engaged in audits, assurance or related services in line with the international best practices and to support to such members efforts in raising the standard of professional services.
The key features of the APRS Program are as follows:
- Review of engagements to ensure that Audit, Assurance and Related Services rendered by firms, comply with the Chartered Accountants Ordinance, 1961, Chartered Accountants Bye-Laws, 1983, Professional Standards, Training Regulations and Directives of the Council of the Institute;
- Applicable to – non – QCR rated firms carrying out Audit, Assurance or Related Services;
- Establishment of a Directorate of Practice Review; and
- Constitution of an Independent Appellate Forum.
The APRS Program is being introduced vide Directive 4.25 ‘Audit Practice Review & Support Program’. The effective implementation of the APRS Program will go a long way in the development of the profession.