Quality Control Standards
Issued by the Auditing Standards Board
American Institute of Certified Public Accountants
Monitoring a CPA Firm's Accounting and Auditing Practice
1. This Statement provides guidance on how a CPA firm implements the monitoring element of a quality control system in its accounting and auditing practice.1
2. Statement on Quality Control Standards No. 2, St/stem of Quality Control for a CPA Firm's Accounting and Auditing Practice, describes Monitoring as one of the five elements of quality control. It provides that a CPA firm2 should establish policies and procedures to provide the firm
1Accounting and auditing practice refers to all audit, attest, accounting and review, and other services for which standards have been established by the AICPA Auditing Standards Board or the AICPA Accounting and Review Services Committee under rule 201 or 202 of the AICPA Code of Professional Conduct (AICPA, Professional Standards, vol. 2, ET sees. 201 and 202). Standards may also be established by other AICPA senior technical committees; engagements that are performed in accordance with those stan-dards are not encompassed in the definition of an accounting and auditing practice.
2 A firm is defined in the AICPA Code of Professional Conduct as "a form of organiza-tion permitted by state law or regulation whose characteristics conform to resolutions of Council that is engaged in the practice of public accounting, including the individual owners thereof" (AICPA, Professional Standards, vol. 2, ET sec. 92.05).
Copyright © 1996 by
American Institute of Certified Public Accountants, Inc., New York, NY 10036-8775
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