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ISQC 1: Definitions

Updated: Jul 19, 2022

In this ISQC, the following terms have the meanings attributed below:


Date of Report | 报告日

The date selected by the practitioner to date the report.


Engagement Documentation | 业务工作底稿

The record of work performed results obtained, and conclusions the practitioner reached (terms such as “working papers” or “work papers” are sometimes used).


Engagement Partner | 项目合伙人

The partner or other person in the firm who is responsible for the engagement and its performance, and for the report that is issued on behalf of the firm, and who, where required, has the appropriate authority from a professional, legal or regulatory body.


Engagement Quality Control Review [EQCR] | 项目质量控制覆核

A process designed to provide an objective evaluation, on or before the date of the report, of the significant judgments the engagement team made and the conclusions it reached in formulating the report. The engagement quality control review process is for audits of financial statements of listed entities, and those other engagements, if any, for which the firm has determined an engagement quality control review is required.


Engagement Quality Control Reviewer | 项目质量控制覆核人员

A partner, other person in the firm, suitably qualified external person, or a team made up of such individuals, none of whom is part of the engagement team, with sufficient and appropriate experience and authority to objectively evaluate the significant judgments the engagement team made and the conclusions it reached in formulating the report.


Engagement Team | 项目组

All partners and staff performing the engagement, and any individuals engaged by the firm or a network firm who perform procedures on the engagement. This excludes external experts engaged by the firm or a network firm.


Firm | 会计师事务所

A sole practitioner, partnership or corporation or other entity of professional accountants.


Inspection | 检查

In relation to completed engagements, procedures are designed to provide evidence of compliance by engagement teams with the firm’s quality control policies and procedures.


Listed Entity | 上市实体

An entity whose shares, stock or debt are quoted or listed on a recognized stock exchange, or are marketed under the regulations of a recognized stock exchange or other equivalent body.


Monitoring | 监控

A process comprising an ongoing consideration and evaluation of the firm’s system of quality control, including a periodic inspection of a selection of completed engagements, is designed to provide the firm with reasonable assurance that its system of quality control is operating effectively.


Network Firm | 网络事务所

A firm or entity that belongs to a network.


Network | 网络

A larger structure:

  1. That is aimed at cooperation, and

  2. That is clearly aimed at profit or cost-sharing or shares common ownership, control or management, common quality control policies and procedures, common business strategy, the use of a common brand name, or a significant part of professional resources.


  1. 以合作为目的;

  2. 明确旨在共享收益或分担成本,或共享所有权、控制权或管理权,共享统一的质量控制政策和程序,共享同一经营战略、使用同一品牌或共享重要的专业资源。

Partner | 合伙人

Any individual with authority to bind the firm with respect to the performance of a professional services engagement.


Personnel | 人员

Partners and staff.


Professional Standards | 职业准则

IAASB Engagement Standards, as defined in the IAASB’s Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services, and relevant ethical requirements.


Reasonable Assurance | 合理保证

In the context of this ISQC, a high, but not absolute, level of assurance.


Relevant Ethical Requirements | 相关职业道德要求

Ethical requirements to which the engagement team and engagement quality control reviewer are subject, which ordinarily comprise Parts A and B of the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with national requirements that are more restrictive.

是指项目组和项目质量控制覆核人员应当遵守的职业道德要求,通常包括国际会计师职业道德准则理事会《国际职业会计师道德守则》中的 A 和 B 部分以及各国更严格的要求

Staff | 员工

Professionals, other than partners, including any experts the firm employs.


Suitably Qualified External Person | 具有适当资格的外部人员

An individual outside the firm with the competence and capabilities to act as an engagement partner, for example, a partner of another firm, or an employee (with appropriate experience) of either a professional accountancy body whose members may perform audits and reviews of historical financial information, or other assurance or related services engagements, or of an organization that provides relevant quality control services.


*Quick note to Audit Firms:

Firms are recommended to research the requirements of the three new quality management standards that have been adopted by the International Auditing and Assurance Standards Board (IAASB). These standards are scheduled to become effective on December 15, 2022.

The standards, which include the International Standards on Quality Management ISQM 1 and ISQM 2, as well as the International Standard on Auditing ISA 220 Revised, are an evolution from a traditional, more linear approach to quality control.

They are intended to create a more robust System of Quality Management for Firms that use the standards developed by the International Auditing and Assurance Standards Board (IAASB). The new standards provide an approach to audit quality management that is robust, scalable, and proactive. This approach is essential to ensuring that the auditing profession will continue to be trusted and viable in the future.

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