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TSQC
 
Thai Standard on Quality Control

FAP set out Thai Standard on Quality Control (TSQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, with effective date on 1 January 2014. This standard deals with a firm’s responsibilities for its system of quality control designed to provide it with reasonable assurance that (i) the firm and its personnel comply with professional standards and applicable legal and regulatory requirements and (ii) reports issued by the firm or engagement partners are appropriate in the circumstances. This will enhance the audit quality, promote public trust in both financial reporting and auditing profession, as well as reduce the risks of auditing failures which will negatively affect capital market and overall economy.
IFAC set out the International Standard on Quality Control 1, of which TSQC1 is based on, since 2005, with amendments in 2009. In Thailand, draft TSQC1 was disseminated in 2010 and promulgated in the beginning of 2011. The effective date is 1 January 2014 but earlier adoption is encouraged. Thai audit firms and auditors should be well-prepared in advance to establish or improve their existing quality system to comply with this standard.
 
Elements of a System of Quality Control
 
1. Leadership responsibilities for quality within the firm – The firm shall establish policies and procedures designed to promote an internal culture recognizing that quality is essential in performing engagements. Such policies and procedures shall require the firm’s management to assume ultimate responsibility for the firm’s system of quality control.
2. Relevant ethical requirements – The firm shall establish policies and procedures designed to provide it with reasonable assurance that the firm and its personnel comply with relevant ethical requirements.
3. Acceptance and continuance of client relationships and specific engagements – The firm shall establish policies and procedures for the acceptance and continuance of client relationships and specific engagements.
4. Human resources – The firm shall establish policies and procedures designed to provide it with reasonable assurance that it has sufficient personnel with the necessary competence, capabilities, and commitment to ethical principles.
5. Engagement performance – The firm shall establish policies and procedures designed to provide it with reasonable assurance that engagements are performed in accordance with professional standards and applicable legal and regulatory requirements.
6. Monitoring – The firm shall establish a monitoring process designed to provide it with reasonable assurance that the policies and procedures relating to the system of quality control are relevant, adequate, and operating effectively.
 
Effective Date

According to FAP’s announcement no. 9/2554, systems of quality control in compliance with this TSQC1 are required to be established by 1 January 2014.
 
Subcommittee of Development and Supervision on Quality Control Review of Auditors

Following the promulgation of the TSQC1 which will be effective in 2014, FAP Board meeting no. 2/2555 dated 15 March 2012 has approved the appointment of the Subcommittee of Development and Supervision on Quality Control Review of Auditors and its adviser as well as its roles and responsibilities as follows.
 


Composition of the Subcommittee

Roles and Responsibilities


 In addition, FAP Board meeting no. 2/2556 dated 7 February 2013 has approved the Goals, Missions and Key Operation Plans as follows.
Goals, Missions and Key Operation Plans