Chapter 5Quality Control and Peer Review
Learning objectives
- Recognize the requirements related to establishing a system of quality control as found in generally accepted government auditing standards (GAGAS or the Yellow Book).
- Identify the GAGAS requirements for monitoring the system of quality control.
- Recognize the GAGAS requirements related to peer review.
Introduction
Chapter 5 of GAGAS establishes GAGAS requirements and guidance for quality control and assurance, and for administering, planning, performing, and reporting on peer reviews of audit organizations that conduct engagements in accordance with GAGAS.
Quality control and assurance
The 2018 Yellow Book emphasizes the topic of quality control and provides audit organizations with expanded guidance to assist them in implementing an effective program. An audit organization’s system of quality control is one of the cornerstones of ensuring effective GAGAS engagements. GAGAS acknowledges that the nature, extent, and formality of an audit organization’s quality control system will vary based on the audit organization’s circumstances, such as size, number of offices and geographic dispersion, knowledge and experience of its personnel, nature and complexity of its engagement work, and cost-benefit considerations.
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