Kvalitetsstyring i mindre revisionsvirksomheder

Serkan Özüpek

Student thesis: Master thesis


All auditing firms must relate to quality control. The requirement to have companies’ accounts audited by a qualified auditor is designed to protect the public interest. Since 2002 resulted in establishing public oversight boards in Europe and USA. There has been a world-wide increase in the interest of auditing and the role of auditors in financial scandals for the last 15 years. The aim of this report is to examine the development in audit theory and how quality control is based on audit theory. I have examined the quality control in Denmark and the rules which guide auditors in securing high quality in their daily work. The new act on Danish Auditing Principles was introduced in Denmark, laying down statutory quality control regulations. Experience has shown that small auditing firms in particular have had problems with the establishment of adequate quality control systems. The rapport will illustrate in which way a small auditing firm can live up to the demands laid down in the statutory quality control regulations, using appropriate resources. ”Quality control is now concerned with the policies and procedures which are designed to establish, monitor, review and secure adherence to professional standards in all aspects of the professional practice”. The theories show that it is needed to an external control where outside parties control that the audit company has established an internal control which is sufficient according to the standards. The external control shall also monitor that the company follow the procedures and policies. In Denmark the first standard of quality control came in 1981 as recommendation no. 4 and was updated in 1994. In 2002 the standard number 220 replaced the recommendation and worked until 2005 where it was divided into 2 parts; standard number 1 and number 220. Standard number 1 deals with the general quality control in the company and number 220 deals with auditing financial statements. The history of external quality control in Denmark began in 1994 where the association FSR started systematically controlling their members. In 2003 the Danish Parliament decided to establish a public oversight board which until now has controlled all the audit companies which existed at the beginning of the quality control. At the beginning of the compulsory control, there was not established a sufficient quality control in many audit companies but this has over the 1st period of quality control improved so the main problem is that the systems now have deficiencies. 1,357 audit companies have been controlled and 482 companies have closed after they have been chosen to control. Of the 1,357 controlled companies 216 could not be approved at the 1st control and they have therefore been subdued to further control. If the breach in the system established by the controlled company has been gross enough the standard penalty has been a fine at d.kr. 100.000.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2010
Number of pages129