The quality control standards review ("QC review") involves the following steps:
- Entity reviewers, appointed by the PAOC (Firm Level)1, carry out QC review on accounting entities (“AEs”) to assess the quality controls of AEs against the Singapore Standards on Quality Management 1 and 2 (“SSQM 1” and “SSQM 2”).
- The Entity reviewers submit a report to the Registrar at the conclusion of the QC review. The Registrar then submits a report to the PAOC (Firm Level) if the Registrar is of the opinion that the AE's compliance with the quality control standards is assessed to be (i) partially satisfactory; or (ii) not satisfactory2.
- The PAOC (Firm Level) decides on the review outcome and, if it concludes that the outcome is partially satisfactory or not satisfactory2, orders the AE to undertake remedial actions, and/or makes other orders to protect the public interest. Find out more about QC review - orders.
1 Means the PAOC without any of its members who are public accountants.
2 The categories of outcome of QC review (and their definition) are as follows:
Category of Outcome | Definition |
|---|---|
Satisfactory | If the relevant professional standards/pronouncements have been complied with in all significant respects with no instance(s) of non-compliance |
Satisfactory but with findings | If the relevant professional standards/pronouncements have been complied with in all significant respects, with limited and/or minor instance(s) of non-compliance |
Partially Satisfactory | If extensive number of minor instances or more than minor instance(s) of non-compliance with relevant professional standards/pronouncements have been identified. However, the instances of non-compliance are not significant/severe |
Not Satisfactory | If extensive number and/or significant/severe and/or repeated non-compliances with relevant professional standards/pronouncements have been identified |
Note: Significance/severity of non-compliance with relevant professional standards/pronouncements is assessed for each inspection finding, taking into account the nature, severity and pervasiveness of the finding.
