About QARO

The Quality Assurance Review Office (QARO) is a division/unit created by Philippine Institute of Certified Public Accountants (PICPA) to implement the QAR program under its duties and responsibilities as Accredited Integrated Professional Organization (AIPO), as the designated implementing arm of the QAR program under Professional Regulatory Board of Accountancy Resolution No. 57, Series of 2023.

The QAR Program has been established to provide reasonable assurance that the following professional standards are properly adhered to by all Firms/CPA practitioners who perform audits of financial statements:

  • PSQM 2, Engagement Quality Reviews;
  • Philippine Standards on Auditing (PSAs) 220 – Revised; and
  • All relevant PSAs.

The scope of the QAR shall include:

  • Review of the system of quality management (SOQM) instituted at the firm level and engagement level; and
  • Reviews of completed audit engagements.

Responsibilities of the Firm/CPA Practitioner:

  1. To adopt and properly implement the system of quality management at the firm level and engagement level in compliance with the requirements of PSQM 1, PSQM 2, PSA 220- Revised and other relevant Philippine Standards on Auditing (PSAs);
  2. To document the system of quality management through its System of Quality Management (SOQM) Manual;
  3. To conduct quality audits of financial statements and prepare audit documentations to support the audit opinions issued;
  4. To make available the SOQM Manual and audit documentation of the selected engagement files for review during the QAR;
  5. To fully cooperate with the conduct of the QAR;
  6. To answer/respond/explain the findings noted in the QAR;
  7. To conduct root cause analysis for the findings to be noted in the QAR;
  8. To prepare and submit to the QARO, within thirty (30) calendar days after the receipt of the Final Inspection Report, a written remediation plan on how to address the observations and findings; and
  9. To complete all the remediation within a period of eighteen (18) months from the receipt of the Final Inspection Report while providing interim updates at least every six (6) months.

Responsibilities of the PICPA – QARO

To evaluate the quality of the audits of the financial statements issued by the Firm/CPA Practitioner.
The evaluation process focuses on:

  1. A review of the system of quality management (SOQM) measures the Firm/CPA practitioner has instituted in his practice; and
  2. An ascertainment on compliance with prescribed professional, ethical and technical standards of public practice.