Master Study: The Quality of the Audit Process in the Light of Professional Pronouncements of Standards Setting Bodies

the audit firms seek to gain new clients and to retain their existing ones in order to expand and increase the size of their share in the market. However the aforementioned sought may often interfere with the quality of the audit process, once attaced by absence of an afficient system for control the performance of the audit. The absence of system of audit quality control negatively influences client acceptance procedures, follow - up audit procedures and stress on the efficiency and integrity of the audit staff, which ultimately affects the reputation of audit firms. In this sense a number of professional bodies have initiated the issuane of some criteria to develop guidance on the concept and elements of the quality control system to be applied within the auditng firms to ensure the quality of the audit process. Meanwhile, Public Companies Accounting Oversight Board (PCAOB) issued the quality control (QC Section 20), which included a definition of the quality control system in the audit companies, explaining the various incentives. The Board also issued both the (QC section 30) and the (QC Section 40) to provide information of the key elements of the quality control system, nakely, "oversight" and "personnel management", and under the "Clarity Project", which started in 2004 with the aim of improving the quality of the audit by establishment of an objective for each auditing standard to reflect a principles - based approach to standard - setting and Quality control to make it easier to read, understand, and develop. In 2008, the international auditing and assurance standards board (IAASB) of the International Federation of Accountants (IFAC) issued both the Internaitonal Standard on Quality Control (ISQC 1) entitled "Quality Control for Frims that Perform Audits and Reviews of Financial statements, and other Assurance and Related Services Engagements and International Standard on Auditing (ISA 220) entitled "Quality Control for an Audit of Financial Statement", and in November, 2010 (AICPA) has issued the Firms's System of Quality Control (SOCS 8). This step is taken by AICPA as part of an attempt to achieve convergence with International Auditing Standards (ISAs). At the same time, an attempt is made to reduce unnecessary differences with the standards issued by the (PCAOB).

Ahmed Zaky Hussien Metwally

Professor of Auditing, 

Head of the Accounting and Auditing Department

Dean of Faculty of Commerce

Suez Canal University

Ahmed Abou Samak

Correspondent Author,

Assistant Professor, 

College of Business

Al Ain University of Science & Tehcnology & Suez Canal University