casrilanka

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) being the only national body of professional accountants, whose members are statutorily empowered to conduct audits of public companies, parastatals and organizations established by a statute, is obliged and committed to enhance the public trust and confidence placed in the audit profession to ensure members’ compliance with established auditing standards.

To enhance the effectiveness of audits and audit regulation, CA Sri Lanka worked on a project, funded by the World Bank to strengthen the capacity and competency of the Institute of Chartered Accountants of Sri Lanka to lead and oversee the design and operationalization of an Audit Quality Assurance (AQA) programme and to develop a sustainable QA framework. This project grant is expected to establish quality assurance arrangements for audit practitioners and make it functional.

The main aim of this programmeis to familiarize practicing members and firms with SLSQC 1 policies and procedures; and assist, guide and mentor them to help meet the standards of audit quality required.

1. Audits conducted in accordance with Sri Lanka Auditing Standards will enhance the integrity and transparency of Financial Statements and improve public perceptions of financial reporting and auditing, and benefits that flow from such work.
2. It will support capital market development.
3. It will safeguard the audit practitioner and CA Sri Lanka from the risk of audit failure and enhance the credibility of the Profession and raise the profile of CA Sri Lanka and its members.
4. It will help protect practitioners from claims for professional negligence.

The AQA programme will be launched on a voluntary basis, giving space for practitioners who need time to adjust to the standards established by CA Sri Lanka. It will provide assistance where improvement is needed, and obtain information on the state of readiness of practitioners.

AQA will be carried out in 2 stages –

• Phase 1 of the programme envisages initial assessment visits to practicing firms volunteering to have their practices reviewed by one of three retired senior audit partners of international firms in Sri Lanka on a confidential basis.
• A detailed file (engagement) reviewis envisaged to be rolled out in the second quarter of 2015 as Phase 2. That programme will be developed on the experience gathered in carrying out Phase 1.

Phase 1 will be preceded by SLSQC 1 training sessions, workshops and discussions, to raise awareness among practitioners.

Initial Assessment Visits focus on the procedures, processes and controls established by firms t