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Statement on Quality Control Standards (SQCS) No. 8 supersedes SQCS No. 7. SQCS No. 8 does not change or expand SQCS No. 7 in any significant respect. SQCS No. 8 has been drafted in accordance with the ASB’s clarity drafting conventions, which include the following:
To reflect a more principles-based approach to standard setting, certain requirements that are duplicative of broader requirements in SQCS No. 7 have been moved to application and other explanatory material, consistent with ISQC No. 1. In the ASB’s view, this has not changed the overall effectiveness of the proposed SQCS.Paragraph 46 of SQCS No. 8 contains a requirement that procedures established for dealing with differences of opinion should enable a member of the engagement team to document that member’s disagreement with the conclusions reached after appropriate consultation. This requirement was included in Statement of Auditing Standards No. 108, Planning and Supervision (AICPA, Professional Standards, vol. 1, AU sec. 311, paragraph .32). The ASB believes that this requirement is more appropriately placed at the firm level for all engagements.