Statement on auditing standards, 004

              Statement on
Auditing Standards
December 1974 4
Issued by the Auditing Standards Executive Committee
AICPA American Institute of
Certified Public Accountants
Quality Control Considerations for a
Firm of Independent Auditors
Introduction
1. Rule 202 of the Rules of Conduct of the Code of Professional
Ethics of the American Institute of Certified Public Accountants
requires members, when they are associated with financial statements,
to comply with the applicable generally accepted auditing standards.
Those standards have to do primarily with the characteristics and
conduct of individual auditors. A need has arisen to identify policies
and procedures of a firm of independent auditors ( referred to here­inafter
as " a firm" or " the firm") that may affect the quality of work
in its audit engagements. This Statement sets forth certain con­siderations
in establishing policies and procedures that will provide
the firm with reasonable assurance of conforming with generally
accepted auditing standards.
2. Complying with generally accepted auditing standards is a
basic objective of every firm conducting an audit practice. While each
of the elements of quality control applies to all firms, the extent to
Quality Control Considerations
Copyright © 1974 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036