Firm's Quality Control Review (QCR)

The Quality Assurance and Control Department (QACD) and Quality Assurance and Control Committee (QACC) of CPA Afghanistan are responsible for quality control reviews (QCRs) and inspections of licensed audit firms and at the end of each QCR of the firm CPA Afghanistan will provide a rating to the firms based on the decision of QACC and, if required, by CPA Afghanistan Board. These reviews ensure that firms adhere to international auditing standards, ethical codes, and other local legal and regulatory requirements while conducting their engagements. By enforcing these standards, CPA Afghanistan promotes consistency, transparency, and accountability in financial reporting, fostering public trust in the accountancy profession.

Auditors must perform their work with care, skill, and diligence, adhering to International Standards on Auditing (ISAs). By applying professional skepticism, analytical review, and sound judgment, they ensure high audit quality, minimize risks of negligence, and maintain their credibility and reputation.

The QCRs conducted by CPA Afghanistan follow International Standards on Quality Control (ISQC), International Standards on Quality Management (ISQM), and other standards set by the International Federation of Accountants (IFAC). These reviews assess the design and operational effectiveness of a firm's quality control systems at leadership and management levels. Key areas evaluated include the firm’s policies and procedures, monitoring mechanisms, compliance with ISAs, and the effectiveness of internal controls. Additionally, the adequacy of audit documentation and ethical compliance, including independence and confidentiality, are scrutinized to ensure global best practices are followed.

During QCRs, CPA Afghanistan evaluates various aspects such as the firm’s engagement performance, staff competence, and adherence to training and development requirements. The reviews aim to identify areas for improvement, provide recommendations, and ensure firms maintain rigorous quality control systems. Firms that fail to meet standards may be required to implement corrective action plans, undergo follow-up reviews, or face regulatory consequences. This comprehensive process strengthens audit quality, enhances trust in financial reporting, and upholds the integrity of Afghanistan’s financial systems.

For further details, please refer to the Quality Assurance and Control Department (QACD) framework available on our website.